What is the expected timeline for the investigation and potential resolution, and how might that timeline influence market positioning?

Timeline outlook – Share‑holder‑rights firms such as Schall typically file a formal complaint within 2‑4 weeks of receiving the initial evidence, followed by a discovery phase that lasts 3‑6 months. If the case proceeds to settlement negotiations, those can be resolved in 6‑12 months; a full trial, however, pushes the horizon out to 12‑18 months (or longer if appeals are filed). In practice, the market will price in the near‑term uncertainty (the filing and discovery window) well before any definitive judgment or settlement is announced.

Trading implications – The immediate reaction to the filing is a sharp, sentiment‑driven sell‑off (TLX is already trading with a –70 sentiment bias). Technicals show the stock near its recent low‑point, with the 20‑day EMA and a broken 50‑day trend line providing support around $1.30; the RSI is in the oversold zone (~30). For the short‑term (0‑3 months) you can lean bearish: consider a modest short position, a protective‑put spread, or a tight‑stop‑loss if you stay long, as volatility is likely to spike during the discovery phase. If the case settles favorably or is dismissed, the stock could rebound sharply, so a contingent long entry around the $1.30 support with a stop just below $1.20 would capture the upside while limiting risk. Keep the 12‑18‑month window in mind for a potential “resolution catalyst”—if you have the conviction that the allegations are weak, you might position for a rebound after the litigation tailwinds fade, but until then the risk‑reward profile favors defensive, volatility‑aware positioning.