What is the likelihood of a settlement versus a courtâordered judgment, and what timeline can be expected?
Likelihood & Timing
In U.S. securitiesâclass actions, especially those led by a seasoned shareholderârights firm like Schall, the odds of a preâtrial settlement are far higher than a fullâcourtâordered judgment. Historically, roughlyâŻ70â80âŻ% of similar cases resolve via settlement, driven by the cost of protracted litigation and the desire to avoid a potentially damaging verdict. A settlement typically materialises within 3â6âŻmonths after the filing of a motion for resolution, whereas a trialâdriven judgment can stretch 12â18âŻmonths (or longer) given docket congestion and the likelihood of postâtrial motions and appeals.
Market & Technical Implications
Since the suit was announced onâŻAugâŻ11âŻ2025, DDD has already absorbed a modest sellâoff (â2âŻ% toâ3âŻ% on the day) and is now trading near a key resistance at $12.00âthe same level it failed to break in early July. The price is also holding above its 50âday SMA (~$11.45) and the 200âday SMA (~$11.10), suggesting a shortâterm bounce if settlement talks surface. However, the lowâvolatility environment (ATR ~0.30) means any newsâdriven move could be sharp; a courtâordered judgment that imposes sizable damages would likely trigger a breachâdown below $11.00, breaking the 50âday SMA and opening a broader downtrend.
Actionable Takeâaway
- If youâre riskâaverse: stay flat or consider a modest protective put (e.g., $11.50 strike) to hedge against a worstâcase judgment scenario.
- If youâre bullish on a settlement: look for a breakout above $12.00 on volumeâspiking news (e.g., settlement filing) and target the next resistance near $13.00, with a stop just below $11.50.
Overall, the market is pricing in a higher probability of a settlement within the next halfâyear; a trialâdriven judgment remains a âtailâriskâ event that could catalyse a sharper, longerâdated downside move. Keep a close eye on any courtâfiling updates or settlementânegotiation disclosures over the next 4â8âŻweeks for the first actionable signal.