What is the expected timeline for the investigation and any potential settlement or court ruling?

Expected timeline: In securities‑class‑action cases like the Pomerantz LLP inquiry, the investigative phase usually lasts 3‑6 months while the firm gathers documents, conducts interviews and assesses the strength of the claim. If the investigation uncovers actionable evidence, the parties will typically move to discovery and settlement negotiations, a process that runs 6‑12 months beyond the initial review. Most settlements are reached 12‑18 months after the complaint is filed, although a few high‑profile cases can stretch to 24 months before a court‑ordered resolution or a final judgment is issued. Given that the notice was released on Sept. 3 2025, investors should anticipate the first material update (e.g., a settlement offer or a motion to dismiss) by Q1‑Q2 2026, with any definitive court ruling possibly arriving late 2026‑early 2027 if the matter proceeds to trial.

Trading implications: The announcement has already injected negative sentiment (‑60 sentiment score) and has pushed NEOG below its 50‑day moving average, with the price testing the $3.20 support level that coincides with a strong Fibonacci‑38.2% retracement. Volume has spiked 45 % above its 10‑day average, indicating heightened trader interest in the news. Until the investigation’s outcome is clearer, the stock is likely to remain volatile and range‑bound. A prudent short‑term strategy is to reduce exposure—either by trimming long positions or by buying protective puts 3‑4 months out (expiring Q1‑2026) to hedge against further downside if a settlement is not reached. If the market begins to price in a settlement (e.g., a press release in early 2026 indicating a favorable resolution for shareholders), a re‑entry on a breakout above the $3.40 resistance level—confirmed by a daily close and a bullish MACD crossover—could offer a risk‑managed upside play.