Expected timeline for the lawsuit and related disclosures
Because the press release only announces that SLQT investors can act as lead plaintiffs with the Schall Law Firm, the filing of the securities‑fraud complaint is still pending. In practice, a lead‑plaintiff selection and the formal complaint usually occur within 2‑4 weeks after the announcement. Once the complaint is filed with the U.S. District Court, the case will move through the standard federal securities‑fraud schedule:
| Phase | Approx. time‑frame |
|---|---|
| Complaint filing & service | 0‑2 weeks |
| Defendant response (answer/motion to dismiss) | 21 days after service (≈3 weeks) |
| Class‑certification motion & briefing | 60‑90 days from filing |
| Discovery (document production, depositions) | 6‑12 months total, but the first round of document requests typically appears within 2‑3 months |
| Pre‑trial motions & settlement talks | 12‑18 months after filing |
From a disclosure standpoint, the company is required to file a Form 8‑K (or a Form 6‑K for foreign issuers) as soon as the lawsuit is filed, because the filing constitutes a material event under SEC Rule 10‑00. Expect that filing within 5‑10 business days after the complaint is lodged. Subsequent updates—e.g., motions to dismiss, class‑certification rulings, or settlement offers—must be disclosed on a timely basis, usually within 24 hours of the material development.
Trading implications
- Short‑term: The imminent 8‑K filing will likely trigger a modest price reaction (typically 2‑4 % volatility) as the market digests the specifics of the allegations and any immediate corporate response.
- Mid‑term: If the case proceeds to class certification (≈3‑4 months), the stock could face added downside pressure, especially if discovery reveals material weaknesses. Conversely, an early dismissal or settlement could provide a catalyst for a rebound.
- Actionable tip: Anticipate a near‑term sell‑off on the 8‑K release; consider positioning with a tight stop‑loss if you are long, or look for short‑term put opportunities. Monitor SEC filings and court dockets for any updates that could accelerate or de‑escalate the risk profile.