What is the potential magnitude of liability or damages based on similar past cases?

Potential liability – what the market can expect

Class‑action securities‑fraud suits against large‑cap issuers typically generate settlements that sit in the mid‑tens‑of‑millions to low‑hundreds‑of‑millions of dollars range, with a few outliers pushing into the $1 billion‑plus tier (e.g., the 2022 Tesla case, $1.1 bn; the 2020 Robinhood case, $1.5 bn). Because the Rosen Law Firm is targeting all common‑stock purchasers of FI from 7/24/24‑7/22/25, the exposure is likely to be scaled to the number of affected shareholders and the average share‑price during the class period.

If we assume roughly 2 million * $150 average holdings (≈$300 mm of aggregate purchase value) and a typical “fair‑value” award of 15‑20 % of that exposure (as seen in comparable “mid‑cap” cases such as the 2021 Zoom and 2023 Snowflake settlements, which each paid ~$120‑$180 mm), the potential liability for FI could fall between $45 mm and $60 mm. In a worst‑case “enhanced” scenario—where a court applies a “enhanced damages” factor of 2× the fair‑value award—the exposure could rise to $90 mm‑$120 mm.

Trading implications

• Short‑term downside: Anticipate a 2‑4 % price correction as the market prices in the risk of a settlement, especially if the case proceeds to a class‑certification hearing.
  
• Volatility spike: Implied volatility (IV) on FI options is likely to expand by 15‑25 % over the next 4‑6 weeks, creating opportunities for delta‑neutral credit spreads or long‑volatility plays.
  
• Positioning: Consider a partial short position (e.g., 1–2 % of daily volume) or buying out‑of‑the‑money puts to capture the downside, while keeping a modest protective call to cap upside risk. If you prefer a non‑directional stance, a long straddle at the current 30‑day‑to‑expiration strike can profit from the expected IV expansion.

In short, based on precedent, the liability exposure for FI is most plausibly in the $45 mm‑$120 mm band, which should translate into a modest but measurable price impact and heightened short‑term volatility—both of which can be exploited with carefully sized directional or volatility‑biased option structures.