What is the expected timeline for the investigation and could it impact upcoming earnings releases or other corporate events?

Investigation timeline – Shareholder‑initiated lawsuits of this type normally follow a staged schedule: a “demand letter” and request for documents is filed within the first 30 days, a formal complaint (if the board does not settle) is typically docketed 60‑90 days after the announcement, and discovery can stretch another 3‑6 months. In practice, the first substantive filing is expected by early‑ to mid‑October 2025, with the bulk of the discovery and possible settlement talks playing out through the Q4‑2025 calendar year. Because the case is being pursued on behalf of shareholders rather than the board, there is no “fast‑track” SEC enforcement deadline, so the timeline can easily extend to six months or more before any definitive judgment or settlement is announced.

Potential impact on earnings and corporate events – LivePerson’s next earnings release is scheduled for early November 2025 (its Q3‑2025 results). The investigation’s initial filing will likely land just before that date, creating a short‑term head‑line risk that could compress the earnings‑surprise premium and increase bid‑ask spreads. If the complaint escalates into a formal securities‑law suit, the company may be compelled to disclose material information in its Form 8‑K (e.g., material litigation), which could force a delay or a “quiet‑period”‑style restriction on forward‑looking guidance. Subsequent corporate events—such as any planned share‑repurchase program, dividend declaration, or a potential strategic acquisition slated for Q4‑2025—could be postponed or re‑priced while the litigation proceeds.

Trading implications – The market has already priced in the negative sentiment (‑70 sentiment score) and the stock is trading below its 20‑day moving average with a tightening range (~2‑3 % below recent highs), indicating heightened downside bias. Until the investigation’s first filing materializes, volatility is likely to stay elevated, especially around the November earnings call. A prudent short‑term approach is to reduce exposure or hedge with out‑of‑the‑money puts (e.g., 30‑day 10–15 % OTM strikes) to protect against a sudden price drop if the complaint is filed. If you are long‑term bullish on LivePerson’s platform revenue growth, consider adding a small position after the earnings release, once the immediate litigation shock has been digested and the stock re‑establishes a clear trend above its 50‑day moving average. Keep a close eye on SEC filings (Form 8‑K) and any corporate press releases for updates on the case timeline.