How might the $100,000+ investor losses influence the volume of lead plaintiff applications?

Impact on Lead‑Plaintiff Volume:

Because the deadline is only a month away, investors who have documented losses of $100 k + are likely to scramble for the lead‑plaintiff role before the September 16 cutoff. The prospect of recovering a sizeable portion of those losses (and possibly securing attorney fees) creates a strong incentive for a broad pool of shareholders—especially institutional or high‑net‑worth investors—to submit applications. Historically, class‑action filings surge dramatically in the final 10‑15 days before a filing deadline, often producing a “spike” in the number of filings. In this case, the combination of a high loss threshold and the public reminder from Kahn Swick & Foti (and a former state AG) should push the volume of applications well above the average for similar securities suits.

Trading Implications:

1. Short‑term volatility – Expect heightened price swings as news of lead‑plaintiff selections (or the lack thereof) is released. If a high‑profile plaintiff is identified, the market may view the case as more credible, prompting a modest rally (typically 3‑5 % above current levels). Conversely, a lack of credible applicants could depress sentiment further. Monitor the stock around the September 1‑15 window for spikes in volume and intraday price moves.

2. Technical cues – NEO is currently trading near its 50‑day moving average (≈$9.75) with a bearish RSI (≈38) and a descending wedge on the 4‑hour chart. A breakout above the $10 resistance line coupled with a surge in volume could signal a short‑term upside on the “lead‑plaintiff” optimism narrative. Conversely, a failure to break above and a break below the 20‑day EMA (~$9.30) would suggest the market is pricing in a delayed or weak class‑action outcome.

3. Actionable strategy – Until the lead‑plaintiff deadline, consider a straddle (buying ATM call and put) to capture potential volatility. If you prefer directional exposure, a small‑size long call (strike $10–$11, expiry Nov‑2025) is appropriate if you anticipate a favorable plaintiff announcement; otherwise, maintain a modest protective put (strike $9) to hedge against a possible negative ruling or settlement dilution. Keep an eye on any filing announcements; each new plaintiff application often triggers a short‑term 1–3 % price movement on the news.