What is the expected timeline for the lawsuit's resolution and any potential interim court rulings?

Timeline & Interim Court Activity

The class‑action complaint was filed this week and the first procedural deadline is the lead‑plaintiff motion filing window, which closes on October 28 2025. After that date the court will set a briefing schedule for the motion, typically giving the parties 30‑45 days to file opposition and reply briefs. A judge’s ruling on the lead‑plaintiff designation – and any accompanying motions to dismiss or for a preliminary injunction – can therefore be expected late Q4 2025 to early Q1 2026. If the motion is denied, the case will move into the discovery phase, which often lasts 12‑18 months, pushing a final resolution (settlement or trial) into mid‑2027 or later. In the interim, standard securities‑fraud litigation sees frequent “status‑quo” orders (e.g., stay of trading restrictions, preservation of records) and occasional interim rulings on disclosure or class‑certification thresholds, which can create short‑term price volatility around any court filings or hearings.

Trading Implications

Until the lead‑plaintiff deadline, the market will likely digest the mere existence of the suit, already reflected in the negative sentiment (‑70) and a modest downside bias in SMLR’s price action. Watch for a sharp move when the October 28 deadline approaches – a lead‑plaintiff filing can either bolster the case (fueling a further decline) or, if the motion is dismissed, trigger a bounce. Any interim court order (e.g., a preliminary injunction that freezes certain corporate actions) would act as a catalyst and could see the stock swing 5‑10 % on the news. In the short term, consider tight stop‑losses and a reduced position size until the first court ruling is issued, while keeping an eye on volume spikes around any filing dates. If the case proceeds without a settlement, the long‑term risk remains elevated, suggesting a cautious or defensive stance (e.g., hedging with put options) until the litigation timeline clarifies.