What is the timeline for the lawsuit’s resolution, and how could interim developments move the market?

Timeline for resolution

The filing itself does not contain a hard‑deadline for a final judgment; however, securities‑fraud class actions and similar securities‑law suits typically run 12‑18 months from the first complaint, with many cases stretching to two years when the parties move to settlement or when the case is docketed in a federal district court. In practice, the “lead‑investor” clause in the Easter RocMuni notice signals that the plaintiffs’ counsel expects the case to be resolved either by a settlement agreement or a court‑approved resolution within that 12‑ to 18‑month window. Consequently, traders should treat the mid‑to‑late‑2025 to early‑2026 period as the most probable window for a definitive outcome (settlement, dismissal, or a trial verdict).

How interim developments could move the market

Because the fund’s shares (RMJAX, RMHVX, RMHIX) trade at a discount and carry a -60 sentiment score, any news that changes the perceived probability of a settlement or a court injunction will trigger short‑term price swings.

• Positive interim event (e.g., a settlement offer, a favorable preliminary injunction, or a positive SEC comment) – can lift the discount, trigger buying pressure and narrow the spread to NAV. Expect a rapid bounce, especially if volume spikes on the news; technical indicators (e.g., a break above the 20‑day EMA and a rise in the RSI above 50) would confirm a short‑term rally. A tactical response could be a small‑size long or a “buy‑the‑rumor” position, with tight stops at the prior low‑volume support level (typically the recent 5‑day low).

• Negative interim event (e.g., a court denial of a class‑lead motion, a negative procedural ruling, or a statement that the case will proceed to trial) will reinforce the downside bias. The fund’s price will likely stay under pressure, potentially breaching the 20‑day EMA and testing lower Bollinger‑Band levels. In that scenario a short or a protective put (or a short‑call spread on the fund’s class A shares) would be appropriate, with stop‑losses set just above the 20‑day EMA to limit upside risk.

In summary, treat the next 12‑18 months as the core resolution window; any substantive court filing or settlement news before then will act as a catalyst for the RMJAX‑related ETFs. Traders should stay positioned on the downside with tight risk controls, while keeping an eye on any filing‑court or settlement‑related press releases that could trigger short‑term volatility.