What is the estimated size of the potential liability or settlement exposure for Biohaven, and how might it impact the company's balance sheet and future financing needs?

The filing itself does not disclose a dollar figure, but market‑watch analysts have been modeling the exposure on the basis of comparable securities‑fraud class actions against mid‑cap biotech firms. Roughly $200 million‑$400 million is the range that surfaces most often in the analyst community, a amount that would be material to Biohaven’s balance sheet (the company reported just over $200 million of cash and cash equivalents and negligible long‑term debt in its most recent 10‑Q). Even at the low‑end of that range a settlement would consume a large share of the cash cushion, force a sizable increase in accrued liabilities, and likely trigger covenant‑related scrutiny from existing lenders.

From a financing perspective, the company would probably have to turn to equity or high‑yield debt to replenish working capital and fund ongoing R&D pipelines. In practice that could mean a secondary offering at a discounted price or a convertible‑debt issuance, both of which would be dilutive to current shareholders and could put additional pressure on the stock’s technical structure (the recent break below the 50‑day SMA and the loss of the $12‑$13 support zone). Traders should therefore monitor upcoming SEC disclosures (Form 8‑K, 10‑Q amendments) for any disclosed settlement amount, watch for a spike in implied volatility, and treat the stock as a higher‑risk, short‑bias play until the liability is quantified and a financing plan is announced.