What is the likely timeline for any potential settlement or judgment related to the class action?
Answer
The press release you quoted does not give a specific timetable for a settlement or a judgment in the LAVA Therapeutics (LVTX) class‑action case. Because the filing is still in the “investigation” phase, we can only outline the typical milestones and time‑frames that most securities‑class‑action lawsuits follow. Below is a step‑by‑step look at the likely chronology, together with the range of time that each stage usually consumes in comparable cases.
1. Investigation & Decision‑to‑File (0 – 3 months)
| What happens | Typical duration | How it applies to LVTX |
|---|---|---|
| Fact‑gathering – the firm reviews public filings, analyst reports, internal communications, and any alleged misstatements. | 2–8 weeks (often longer if data are voluminous). | Juan Monteverde’s team is already “announcing an investigation,” so they are probably in the final weeks of this stage. |
| Legal‑strategy meeting – decide whether the alleged conduct meets the threshold for a securities‑class‑action (e.g., material misstatement, fraud, breach of fiduciary duty). | 1–2 weeks. | Expected to be completed quickly once the investigation is wrapped up. |
| Preparation of the complaint – drafting the pleading, identifying class members, and selecting the forum (e.g., U.S. District Court, Southern District of New York). | 2–4 weeks. | If Monteverde & Associates elects to file in New York, the complaint could be ready within a month. |
Bottom line: If the firm moves forward promptly, a formal complaint could be filed within the next 1–2 months after the press release (i.e., by late September 2025).
2. Filing the Complaint & Class‑Certification (0 – 6 months)
| Milestone | Typical time‑frame | What it means for LVTX |
|---|---|---|
| Complaint filed – the case is entered into the docket. | Immediate (court receives the filing the same day). | Assuming a filing by late Sep 2025. |
| Defendant’s answer – LAVA Therapeutics will file a responsive pleading. | 21 days (federal rules) – often a few weeks to prepare. | Expect an answer by Oct 2025. |
| Class‑certification motion – the plaintiff asks the court to certify the class; the defendant typically opposes. | 30–90 days after the answer, then a hearing 2–4 months later. | A class‑certification hearing could be scheduled Dec 2025 – Feb 2026. |
| Court’s decision on certification | 1–2 months after the hearing. | If the court grants certification, the case proceeds as a “class action” by Feb‑Mar 2026. |
If the court denies certification, the plaintiff may still pursue an individual securities‑fraud claim, which would follow a different timeline (generally longer).
3. Discovery (6 – 12 months)
| Phase | Typical length | LVTX‑specific notes |
|---|---|---|
| Written discovery – interrogatories, document requests, requests for production. | 90 days (rule‑mandated) + time to comply. | Expect a 3‑month window (May‑July 2026). |
| Depositions – of LAVA Therapeutics executives, board members, and possibly key analysts. | 1–2 months of depositions, often overlapping with document review. | June‑August 2026. |
| Expert‑witness discovery – both sides may retain securities‑fraud experts. | 30‑60 days after depositions. | Sept‑Oct 2026. |
Discovery can be a bottleneck. In fast‑moving biotech cases, parties sometimes agree to “early‑case resolution” after a few months of discovery, which can truncate the timeline dramatically.
4. Settlement Negotiations (3 – 12 months after discovery)
| What happens | Typical window |
|---|---|
| Settlement‑team formation – each side assembles a team of lawyers, financial analysts, and communications specialists. | 2–4 weeks. |
| Valuation of the claim – using market‑impact analysis, loss‑per‑share calculations, and projected future earnings. | 1–2 months. |
| Negotiation rounds – back‑and‑forth on a “fair and reasonable” settlement amount, class‑member notice plan, and release terms. | 2–6 months (can be quicker if the plaintiff is motivated to resolve). |
| Settlement agreement – once terms are agreed, the parties draft a settlement fund, a “fair‑value” hearing, and a notice plan. | 1–2 months. |
If both parties are eager to avoid a protracted trial, a settlement could be reached by mid‑2027 (≈ 12–18 months after the complaint filing).
If negotiations stall, the case may drift toward trial.
5. Trial (if no settlement) – 12 – 24 months after filing
| Stage | Approximate timing |
|---|---|
| Pre‑trial motions (e.g., summary judgment, motion to dismiss) | 3–6 months after discovery ends. |
| Trial preparation – final witness lists, exhibit preparation, jury selection (if a jury trial). | 2–4 months. |
| Trial – securities‑fraud class actions are usually bench trials; they can last 2–6 weeks. | 6–12 months after the pre‑trial motions. |
| Post‑trial judgment – entry of a final judgment, possible appeals. | 1–3 months after trial. |
If the case goes to trial, the overall timeline from filing to judgment could be 24–36 months (i.e., late 2027 to early 2028).
6. Appeals (optional) – 6 – 12 months after judgment
| What happens | Typical duration |
|---|---|
| Notice of appeal – filed within 30 days of the judgment. | Immediate. |
| Appellate briefing & oral argument | 6–9 months. |
| Appellate decision | 1–3 months after argument. |
An appeal can push the final resolution out another year beyond the trial judgment.
Putting It All Together – A “Real‑World” Timeline Estimate
| Milestone | Earliest plausible date | Most likely date (typical range) |
|---|---|---|
| Investigation complete / decision to file | Early Sep 2025 | Sep – Oct 2025 |
| Complaint filed | Late Sep 2025 | Sep – Oct 2025 |
| Class‑certification decision | Dec 2025 – Mar 2026 | Jan – Mar 2026 |
| Discovery period | May 2026 – Oct 2026 | Jun – Oct 2026 |
| Settlement negotiations | Dec 2026 – Jun 2027 | Mar – Aug 2027 |
| Potential settlement | Mid‑2027 (≈ 12–18 months after filing) | Mid‑2027 (typical for biotech securities cases) |
| If no settlement → trial | Late 2027 – Early 2028 | Late 2027 – Early 2028 |
| If appealed | Early 2029 | Early 2029 (adds ~12 months) |
Bottom‑line estimate:
• If the parties reach a settlement: expect a 12‑18 month window from the initial investigation announcement → mid‑2027.
• If the case proceeds to trial: the full life‑cycle (complaint → judgment) is usually 24‑36 months, putting a final judgment somewhere late 2027 to early 2028.
• If an appeal follows: the ultimate resolution could stretch to 2029.
Why These Ranges Matter for LVTX Stakeholders
- Share‑holder expectations – Most investors anticipate a cash‑distribution within 12‑18 months if a settlement is reached; otherwise, they must wait 2‑3 years for a trial verdict.
- Market impact – A settlement announcement often triggers a short‑term price rebound; a prolonged trial can keep the stock under pressure.
- Regulatory coordination – The SEC may be involved in parallel investigations, which can either accelerate a settlement (to avoid enforcement) or extend the timeline (if the agency pursues its own action).
Take‑away for the Question
Based solely on the information in the press release, there is no explicit timeline disclosed. However, by mapping the standard procedural steps of a U.S. securities class‑action, we can infer that any settlement, if it occurs, is likely to be reached sometime in mid‑2027 (roughly 12‑18 months after the investigation is announced). If the parties do not settle, the judgment (trial) would most plausibly arrive 2‑3 years after the filing, i.e., late 2027 to early 2028, with an additional year for potential appeals.
These estimates assume a typical New York federal court docket and a biotech‑sector defendant; any deviation (e.g., a rapid “early‑case resolution” or a strategic settlement before class‑certification) could compress the timeline dramatically, while extensive discovery disputes or a multi‑defendant settlement could stretch it further.