What is the expected timeline for the investigation and any related court proceedings?

Investigation & litigation timeline

Pomerantz LLP’s notice does not specify a target completion date, but in comparable shareholder‑class‑action investigations the fact‑finding phase usually runs 4 – 8 weeks from the firm’s receipt of the complaint. Once the investigative report is finalized, the next step is filing a formal securities‑fraud complaint with the U.S. District Court, which typically occurs within 1–2 months after the investigation closes.

From filing to the first court‑motion (e.g., a motion to dismiss or a request for class‑certification) the docket in New York federal courts averages 3 – 6 months. If the case proceeds to a full trial, the schedule can extend to 12‑18 months from filing, though most shareholder suits settle well before trial—often within 6‑9 months after the complaint is lodged.

Trading implications

• Short‑term (0‑4 weeks): Expect modest volatility as investors digest the investigation’s existence. The stock may see a 2‑3 % downside pressure on the news, especially if the market perceives a material risk of a class‑action settlement.
• Mid‑term (1‑3 months): As the investigation concludes and a complaint is filed, the market will price in the probability of a settlement versus prolonged litigation. If the filing is without a disclosed settlement amount, the stock could rebound 1‑2 % on the “no‑bad‑news‑yet” narrative, but any hint of a large exposure will reignite the sell‑off.
• Long‑term (6‑12 months): Should the case move toward settlement, the price impact will be limited to the disclosed settlement size. A modest settlement (≤ $50 M) is unlikely to materially move the stock beyond the short‑term swing. A substantial settlement (>$150 M) would trigger a more pronounced correction, potentially 5‑7 % lower than current levels.

Actionable take‑away: Keep a tight stop‑loss (≈ 3 % below current price) for the next 4‑6 weeks while the investigation unfolds. If a complaint is filed and no settlement terms are disclosed, consider a partial‑position reduction to hedge against the 3‑6‑month litigation window, but avoid a full exit unless settlement details emerge that materially alter the company’s cash‑flow outlook.