What is the estimated timeline for the case resolution and any related disclosures that could trigger further market reaction?

Estimated timeline & potential disclosure triggers

A securities‑class‑action against a listed company generally runs two distinct phases:

1. Pre‑trial motions & litigation‑ready filings – After the complaint (Sept 2 2025), the defendant must answer and the parties exchange pleadings, exchange disclosures, and file any “rule‑46” motions seeking early dismissal. In practice, this stage takes 3–4 months. During this window investors often see a Form 8‑K (or a “Materials Event” filing) notifying the market that iRobot is a party to a Share‑holder Rights Litigation. The initial filing usually leads to a modest, short‑lived price adjustment (‑1 % to ‑2 %) as the market digests the exposure.

2. Case resolution (settlement or dismissal) – Most securities‑fraud suits are resolved through settlement, dismissal, or a summary‑judgment motion. Historically, the duration from complaint to final resolution for comparable NASDAQ‑listed firms averages 12‑18 months. If the case proceeds to a bench trial, the timeline can stretch toward the 18‑month band; a settlement can be announced anytime after the 6‑month “discovery” phase, often triggered by an internal review or a “final” SEC filing.

Trading implications

• Watch the next 8‑K filing (likely within the next 4‑6 weeks). A material‑event disclosure will generate a short‑burst of volatility; a defensive‑sell is common as short‑interest contracts rise. Traders could capture the bounce‑back by buying on the dip or placing defined‑risk stops just beyond the 1‑2 % support band that typically forms after the 8‑K release.

• Monitor quarterly reports (10‑Q, 10‑K) for litigation‑related footnotes. When the company updates its “Legal Proceedings” section—usually in the Oct 2025 10‑Q or early 2026 10‑K—any material change (e.g., a settlement figure or a potential exposure) can reignite price movement. Anticipating a possible ‑3 % to ‑5 % downside if a sizable liability is disclosed, many market participants hedge with options or short‑beta exposure.

• Position accordingly: If you’re risk‑averse, keep a modest short position or a protective put until the filing window closes (mid‑October 2025). If you’re bullish on a likely settlement, consider a tight‑range straddle around the expected 8‑K date to capture the volatility premium, then unwind once the market digests the outcome.

In short, expect a first disclosure within the next 4‑6 weeks and full case resolution in about 12‑18 months. Each filing milestone can spark short‑term price swings, so stay ready to act on the upcoming 8‑K and quarterly updates.