What is the expected timeline for the investigation and any subsequent legal actions?

Investigation & Legal‑action timeline

Pomerantz LLP’s filing signals that a formal investigation is now underway. In comparable securities‑fraud cases, the first‑phase fact‑finding phase typically runs 4 – 8 weeks before the firm decides whether to issue a formal demand letter or file a securities‑class‑action complaint. Assuming Pomerantz follows that pattern, investors can expect an initial docket of findings by early‑mid October 2025. If the firm determines that the claims have merit, a complaint filing usually follows within 2‑3 weeks after the demand‑letter stage, putting the first court filing somewhere in late October‑early November 2025.

Trading implications

- Short‑term (next 4‑6 weeks): Anticipate heightened volatility as the market digests the investigation start‑up. The stock may experience a downward bias on the “bad news” press, especially if the company’s recent fundamentals (e.g., cash‑burn rate, trial timelines) look fragile.

- Mid‑term (Oct‑Nov): The confirmation of a demand‑letter or complaint will be a catalyst point. If the filing is limited to “investor‑claims” without alleging major corporate misconduct, the impact may be modest; however, a broader class‑action complaint could spur a sharp sell‑off and prompt institutional cover‑or‑short‑sale activity.

- Actionable strategy: Keep a tight stop‑loss if you hold long positions (≈ 8‑10 % below current price) to protect against a possible downside spike once the demand‑letter becomes public. Conversely, consider short‑term put spreads or defensive hedges for exposure above $8‑$9 (the current support band) to profit from any potential corrective move once the investigation progresses toward a formal complaint.

In short, the investigation will likely surface initial findings by early‑mid October 2025, with possible legal filing in late October to early November. Traders should brace for medium‑term volatility and position accordingly, balancing protective downside stops with opportunistic short‑bias plays as the case evolves.