What is the expected timeline for the investigation and any possible resolution, and how could that influence investor sentiment?

Investigation timeline & possible resolution

Because the notice does not specify a target date, the investigation will most likely follow a conventional legal‐process schedule: an initial fact‑gathering phase lasting ≈8‑12 weeks, followed by a substantive review that can stretch 3‑6 months before any formal settlement, enforcement action, or dismissal is announced. In practice, shareholders should expect the first public update – a “no‑action” or “substantial‑risk” letter from the regulator or a court filing – sometime mid‑Q4 2024. A definitive resolution (e.g., a settlement, a court ruling, or a clearance) would therefore be anticipated late Q4 2024 to early Q1 2025 at the earliest, assuming no unexpected extensions.

Impact on investor sentiment & trading outlook

- Short‑term: The –60 sentiment score reflects a strong bearish tilt. Until the mid‑Q4 update, the market will likely price‑in a “pending‑bad‑news” risk, keeping demand soft and the stock on the downside of key support (~$12.00‑$12.50) on the daily chart. Expect modest upside‑limited buying on any “favorable” procedural news (e.g., a dismissal) and a swift reversal if the investigation escalates (e.g., a civil fine or a material‑risk finding).

- Medium‑term: If a resolution arrives in late Q4/Q1 2025 and clears the allegations, the stock could experience a sentiment reversal—the “relief rally” typically adds 10‑15 % of the price range above the pre‑announcement level, buying the dip into the $13‑$14 zone. Conversely, a settlement that includes a sizeable penalty or disclosure of material misconduct would cement the negative narrative, making the $10‑$11 range a realistic near‑term floor and prompting a trend‑following short‑position.

Actionable tip – Keep a tight watch on the 15 %‑20 % volume spike that often precedes a court filing or regulator press release. A break of the $12.50 resistance on strong volume can serve as a short‑covering trigger; a breach below $11.80 with widening bid‑ask spreads should be treated as a signal to protect downside with stop‑losses or to consider a short‑bias while the investigation drags on.