Could the involvement of a former state Attorney General as a partner affect the credibility or aggressiveness of the lawsuit?

Impact of the former Attorney General’s involvement

Having Charles C. Foti Jr., a former Louisiana Attorney General, as a partner at Kahn Swick & Foti adds a layer of credibility to the securities‑class action against Neogen (NEO). A former chief‑law‑enforcer brings both political clout and a reputation for rigorous, high‑profile litigation, which can make the lead‑plaintiff deadline look more “serious” to investors and to the court. In practice, plaintiffs’ firms that tout a former AG often pursue the case with greater aggressiveness—setting tighter filing windows, demanding higher damages, and pushing for a swift resolution. That dynamic can raise the probability of a settlement or a judgment that materially impacts Neogen’s balance sheet.

Trading implications

From a market‑behavior standpoint, the announcement is likely to trigger a short‑term downside pressure on Neogen’s shares. The –70 sentiment score and the $100 k+ investor loss reminder signal a potentially sizable exposure for shareholders, prompting risk‑averse participants to trim positions. On the technical side, NEO has been trading near its 50‑day moving average with modest volume; a breach below the recent low (≈$12.30) could open a short‑cover rally, while a bounce off the 20‑day EMA (≈$13.10) may act as a floor if the lawsuit’s progress looks contained.

Actionable take‑away

Given the heightened credibility and likely more assertive litigation, a prudent short‑bias position—either a modest outright short or buying put options with a 1–2 month expiry—aligns with the risk of a negative catalyst before the September 16 filing deadline. If Neogen’s price holds above the $13.10 EMA on strong volume, consider scaling back the short exposure and shifting to a defensive hedge, as the market may have already priced in the worst‑case litigation scenario.