What is the expected timeline for the legal proceedings and any required market disclosures?

The Pomerantz LLP notice is a material event that will likely trigger a Form 8‑K filing with the SEC within four business days of the press release (the filing deadline is standard for any event that could affect the price of a listed security). After the 8‑K is released, the market will have a clearer view of the alleged misconduct, the scope of the investigation, and whether any class‑action litigation is expected. In most securities‑law cases, the investigative phase runs anywhere from 30 days to three months, during which the firm gathers documents and conducts witness interviews. If the investigation finds sufficient cause to file a complaint, complaint‑filing and service of process typically occur within 60‑90 days of the 8‑K. Once a complaint is filed, the case moves to the discovery stage, which can extend six to twelve months before any settlement negotiations or trial dates are set. Thus, investors should expect the initial disclosure now, with substantive litigation milestones (complaint, discovery, potential settlement) unfolding over the next 3‑12 months.

From a trading perspective, the immediate reaction will be driven by the 8‑K impact: the stock may experience a short‑term sell‑off (the sentiment score is –65, indicating a bearish bias) as investors price in litigation risk. Technicals on the daily chart show NSP trading below its 20‑day EMA and near a recent low‑volume support level, suggesting limited upside until the legal uncertainty clears. A prudent short‑term strategy is to reduce exposure or tighten stop‑losses around the current price, while keeping an eye on the 8‑K filing for any language that narrows the alleged exposure (e.g., “no material impact” vs. “potential liability”). If the 8‑K indicates a limited scope and the investigation proceeds without a formal complaint, the sell‑off could be short‑lived and a mean‑reversion trade back to the 50‑day EMA may be viable. Conversely, a complaint filing would likely sustain downside pressure, making a defensive position (e.g., buying protective puts or shifting to a market‑neutral pair trade) more appropriate until the discovery phase clarifies the potential financial impact.