What is the potential financial liability and settlement amount that RxSight may face from this lawsuit?

RxSight’s newly disclosed securities‑law lawsuit exposes the company to a potential liability that could run into the low‑ to mid‑million‑dollar range, depending on how the case proceeds and whether a settlement is reached before trial. In similar shareholder‑class actions against small‑cap biotech firms, settlements have typically ranged from $2 million to $10 million, with the higher end reflecting claims that allege material misstatements about product timelines or clinical data. Until the complaint is litigated or the parties announce a settlement figure, the exact exposure remains uncertain, but market participants should price in a material contingent liability that could materially affect RxSight’s cash balance and earnings per share.

From a trading standpoint, the lawsuit adds downside risk to RxSight’s valuation. The stock is already under pressure, reflected by a strongly negative sentiment score (‑65) and a price that is likely testing recent support levels around the 20‑day moving average. Traders should watch for court filings or a press release that quantifies the claim—any disclosure of a settlement figure higher than market expectations could trigger a sharp sell‑off, while a modest settlement or dismissal may provide a short‑term bounce. In the meantime, a prudent approach may be to reduce exposure or employ protective puts to hedge against further erosion, especially given the company’s limited cash runway and the uncertainty surrounding the litigation outcome.