What is the expected timeline for the class action resolution and its impact on the stock's performance over the next few months?
Timeline outlook
Class‑action lawsuits in the U.S. typically move from filing to a settlement or a court‑ordered decision within 12‑18 months. Given the August 12 2025 filing date, the most probable window for a resolution is late 2025 Q4 – early 2026 (Q1). Until a settlement is announced, the case will remain in the discovery and negotiation phase, with periodic court‑date updates that can generate short‑term price spikes.
Impact on NEOG’s price over the next few months
Fundamentals: Neogen (food‑safety) is still operating with solid revenue growth and expanding its microbiology platform, so the underlying business is sound. The class‑action itself is a non‑operating, legal‑risk factor; a positive settlement (e.g., a cash distribution to affected shareholders) would likely be viewed as a “tail‑wind” and could lift the stock 4‑6 % in the weeks after the announcement. Conversely, a protracted case or a settlement that merely caps liability without additional compensation would keep the downside pressure modest but could sustain a ‑2 % to ‑4 % drift as investors price‑in legal uncertainty.
Technical: NEOG has been trading in a broad‑based uptrend since early 2025, holding above its 50‑day SMA (~$12.30) and finding support near the $11.80‑$12.00 range. The recent legal news has added a low‑volume, short‑term sell‑off that has nudged the price toward the lower end of that support zone. If the stock holds above $12.00, the uptrend remains intact; a breach below $11.80 could trigger a 2‑3 % correction as risk‑averse traders trim exposure.
Actionable take‑aways
| Trade idea | Rationale | Entry / Exit |
|---|---|---|
| Long on pull‑back | If the stock stabilises above $12.00 after the short‑term legal‑risk sell‑off, the underlying fundamentals support a continued rally. | Enter near $12.00, target $13.50–14.00 (≈ 10‑15 % upside), stop at $11.60. |
| Short‑cover / defensive | If the price breaks below $11.80, the legal risk may still be unresolved, prompting a risk‑off move. | Short‑cover or set a protective stop at $12.30; consider a modest short if momentum turns sharply down. |
| Event‑driven play | Position ahead of the expected settlement window (Q4 2025/Q1 2026). | Allocate a small “catalyst” position (e.g., 5‑10 % of exposure) to be activated on the day a settlement is disclosed, with a tight stop of 3 % to limit downside. |
Bottom line – Anticipate a Q4 2025 – Q1 2026 resolution. In the meantime, the stock should stay near‑flat to mildly bullish as long as it holds above the $12.00 support level, with upside potential if a favorable settlement is announced and downside risk limited to the $11.80 support zone. Keep a close eye on court filings and any press releases from Robbins LLP for the first concrete catalyst.