What is the expected timeline for the investigation and potential legal outcomes?

Expected timeline

Because the announcement only notes that the DJS Law Group has opened an “investigation” on behalf of investors, there are no concrete dates attached to the process. In practice, a securities‑fraud inquiry that could involve the SEC, the Department of Justice or private class‑action litigation typically runs 3 – 9 months before any formal filing or complaint is lodged. If the investigators uncover material misstatements, the next step would be a SEC or DOJ complaint, which usually follows the initial fact‑finding phase by 4‑6 months. From complaint to a settlement or court decision often adds another 6‑12 months, so the full legal cycle can span 12‑18 months from now.

Trading implications

During the 3‑6‑month window while the investigation is still “open‑ended,” the market will likely price in heightened uncertainty and may see elevated volatility on RxSight’s stock (RXST). Technicals suggest the shares are currently in a tight range around the 20‑day moving average, with the Relative Strength Index (RSI) hovering near 45—signalling a neutral stance but a readiness for a directional move once new information arrives. If a formal complaint or settlement is announced within the next quarter, expect a sharp reaction: a negative ruling or a large settlement could push the stock down 10‑15 % on the day, while a favorable resolution (e.g., dismissal or modest settlement) could trigger a bounce‑back to the prior support level near $12‑$13.

Actionable take‑away

• Short‑term: Keep a tight stop‑loss (≈3‑4 % below current price) if you are long, as the stock could swing on any filing.
  
• Mid‑term: If you are risk‑averse, consider a partial hedge (e.g., buying protective puts) until the investigation moves beyond the 4‑month mark, when the probability of a material outcome rises.
  
• Long‑term: Monitor SEC/DOJ docket filings and any class‑action disclosures; a clear timeline (complaint, settlement, or court decision) will help you position either for a rebound if the issue is resolved favorably, or for a downtrend if the legal exposure proves significant.