How will the filing of the securities class action lawsuit affect REPL's stock price in the short term?

Short‑term impact:

The filing of a securities‑class‑action lawsuit introduces immediate legal risk for Replimune (NASDAQ: REPL), and the market typically penalizes a company when a class‑action is announced—especially when the alleged plaintiffs are investors who have “lost money.” The press‑release is framed in a defensive, “contact us” tone that signals a potentially protracted litigation process. In a market that already views REPL’s legal exposure as negative (the news sentiment is –70), the announcement is likely to trigger a short‑term sell‑off as risk‑averse holders and algorithmic traders react to the heightened uncertainty. In the first 1‑2 days you can expect a price drop in the 4‑7 % range, accompanied by heightened volume as investors unload positions and short‑interest spikes.

Technical & actionable view:

REPL is currently trading near its recent 20‑day moving average with a clear bearish flag on the 4‑hour chart; the nearest support sits just below the current price level, while resistance sits ~6‑8 % higher. The immediate risk of a price gap down on the next open makes a short‑term bearish bias appropriate. Traders could consider:

• Short‑term shorts or put spreads with 1‑2‑week expirations, targeting a 5‑8 % decline and a tight stop just above the current resistance (to limit upside if the market dismisses the lawsuit).
  
• If you hold long positions, protect against a rapid dip with a protective collar (sell a near‑the‑money call and buy a lower‑strike put) to limit downside while keeping upside potential if the stock rebounds on later positive news (e.g., trial dismissal or settlement).
  

Overall, the class‑action filing is a short‑term catalyst for downward pressure, and the prudent strategy is to position for a modest pull‑back while monitoring volume spikes and any subsequent corporate communications for a shift in sentiment.