What is the expected timeline for the lawsuit to progress beyond the lead plaintiff deadline of October 7, 2025?
Timeline outlook
The class‑action filing for CTO investors now has a lead‑plaintiff deadline of 7 Oct 2025. In typical securities‑fraud litigation, once the deadline passes the court will appoint a lead plaintiff (often within 30–60 days) and then move the case into the certification and discovery phase. Assuming the court follows the usual schedule, the next major milestones are:
| Milestone | Approx. date |
|---|---|
| Lead‑plaintiff appointment | Oct – Nov 2025 |
| Class‑certification briefing & ruling | Q1 2026 (≈ 3–4 months after appointment) |
| Discovery & settlement‑preparation | Q2 – Q3 2026 |
| Potential settlement or trial filing | Late 2026 (≈ 12–18 months after the deadline) |
Thus, the lawsuit is expected to move beyond the lead‑plaintiff deadline in the fourth quarter of 2025 and reach substantive progress (certification, discovery, and settlement‑or‑trial positioning) by mid‑to‑late 2026.
Trading implications
Short‑term (now‑through Q4 2025): The market will price in the “deadline‑risk” premium – modest upside for a settlement, but also heightened volatility as investors assess the likelihood of a lead plaintiff being named. Expect the stock to trade in a relatively tight range, with the downside capped by the potential for a favorable settlement and the upside limited by the uncertainty of case outcomes.
Medium‑term (Q1 2026‑Q4 2026): As the case moves into certification and discovery, uncertainty widens. If the court certifies the class and the lead plaintiff is a strong, well‑funded entity, the settlement‑or‑trial risk premium could expand, pushing the stock lower on a risk‑off basis. Conversely, any early settlement talks or a favorable certification ruling could trigger a short‑cover rally. Positionally, a tight‑range, low‑volatility bias now, shifting to a long‑short swing as the Q2‑Q3 2026 milestones approach—use options to hedge or capture upside on settlement news, and consider a modest short position if the case drifts toward a protracted trial.