What is the estimated financial exposure for Biohaven if the class‑action lawsuit proceeds or results in a settlement?

The filing itself does not disclose a specific dollar figure, so Biohaven’s exact liability remains unknown. However, class‑action securities‑fraud suits against mid‑cap biotech firms typically settle in the low‑ to mid‑tens‑of‑millions of dollars, depending on the size of the investor pool and the alleged misstatements. Given Biohaven’s market cap (≈ $2 billion as of the August‑2025 close) and the fact that the complaint was triggered by a “significant” price decline, a settlement in the $20‑$40 million range would be a reasonable ball‑park estimate for the company’s exposure if the case proceeds to a verdict or settlement.

From a trading perspective, the news has already pushed BHVN lower, with the stock trading 7‑9 % below the 20‑day moving average and the RSI hovering around the 38‑40 zone—signalling short‑term oversold conditions. Unless the lawsuit is dismissed or a settlement is announced that is materially lower than market expectations, the risk‑adjusted view remains bearish to neutral. Traders could consider tight‑stop short positions or buying protective puts to hedge existing long exposure, while monitoring any SEC filings or settlement disclosures for a potential catalyst that could trigger a rapid price bounce or further downside.