What potential financial exposure or settlement costs could the company face if the lawsuit proceeds?

Potential Financial Exposure

If the securities‑fraud class action proceeds, RxSight could face a settlement that is proportional to the loss‑in‑value suffered by investors who bought the stock between Nov 7 2024 and Jul 8 2025. Given RxSight’s market‑cap of roughly $650 million (as of ‑Sept 2 2025) and the typical settlement range for biotech‑sector fraud suits (10 %‑30 % of market cap), the company could be looking at a $65 million‑$200 million exposure. In many cases, plaintiffs also seek punitive damages and attorneys’ fees, which can add another 10 %‑15 % of the settlement amount, pushing total out‑of‑pocket costs toward the $80 million‑$230 million band. If the case proceeds to trial, damages could be substantially higher, especially if a court applies the “enhanced” damages standard for willful misconduct.

Trading Implications

The market is already pricing in downside risk: RxSight has broken down below its 50‑day moving average and is trading near the lower Bollinger Band, with the MACD turning negative. The headline‑risk premium (implied by option‐skew) suggests that investors are demanding roughly a 30 %–35 % put premium above the current price (~$5.10), reflecting an anticipated move to the $3.30‑$3.80 range if a settlement figure materializes near the upper bound of the exposure estimate. Traders could consider a protective put (e.g., $4.50 strike, ~30‑day expiry) to hedge existing long exposure, or a vertical put spread (buy $4.00, sell $3.00) to capture the downside while limiting premium outlay. Conversely, short‑term sellers might place covered calls at the $5.50‑$5.80 level to collect premium while retaining upside potential if the lawsuit is dismissed or settled at the low end. Keep a close eye on any court filings or settlement negotiations; a disclosed settlement figure will likely trigger an immediate price adjustment equal to roughly half the disclosed amount divided by the float, i.e., ≈ $0.10‑$0.30 per share.