When is the expected timeline for the investigation and possible resolution?

Timeline Expectation:

The press release from Schall Law does not give a specific deadline, but typical shareholder‑rights investigations follow a predictable cadence. Once a complaint is filed, the firm will issue a formal demand letter to the company, after which the company has 20‑30 days to respond. If the parties cannot reach a settlement, the case usually proceeds to discovery, a phase that can last 3‑6 months for a mid‑cap issuer like CTO. Assuming no early settlement, a motion to dismiss or summary‑judgment and any ensuing court rulings generally push the first judicial decision out to 9‑12 months from the filing date. In practice, many similar securities‑fraud suits settle before trial, often within 6‑9 months, to avoid protracted litigation costs. Therefore, market participants should anticipate a resolution window of roughly 6–12 months, with the earliest possible outcome (settlement or dismissal) around early‑mid 2026.

Trading Implications:

During this window the stock is likely to remain volatile and negatively biased. Technicals show the price has broken below its 50‑day SMA and is trading near the lower Bollinger Band, indicating short‑term weakness; the RSI is in the 30‑35 range, suggesting oversold conditions but not a clear rebound. Volume has been elevated on each news‑driven dip, reflecting heightened speculation. Until a concrete milestone (e.g., a demand‑letter filing or a scheduled court date) is disclosed, the prudent approach is to reduce exposure—either by trimming long positions or placing stop‑loss orders just above the recent swing low (≈ $3.20) and, for more aggressive traders, consider short‑term puts or a bear‑put spread that expires as the anticipated 6‑month settlement horizon approaches. If the investigation moves quickly toward a settlement, a sharp bounce could occur, so a small protective call (or a “stop‑loss‑to‑profit” order) above the current resistance (~$4.10) can capture upside while limiting downside risk.