Key legal‑milestone timeline
- Complaint filing – 20 Aug 2025 – The class‑action complaint is now on the court docket. The first mandatory filing deadline is the “motion to dismiss” (or “motion for a more definite statement”), which must be served within 30 days of service of the complaint (i.e., by mid‑September 2025. A denial of the motion will already create a short‑run catalyst that can push the stock either up (if the motion is denied) or down (if the motion is granted).
- Class‑certification hearing – ≈ 60‑90 days after filing – The court will set a class‑certification briefing schedule and hold a pre‑certification hearing roughly 2–3 months after the complaint, putting the first major class‑certification decision around late October – early November 2025. A favorable certification for plaintiffs typically fuels a rally; a denial can trigger a sell‑off.
- Discovery & settlement window – ≈ 6‑12 months – After certification, the parties enter a discovery phase that usually lasts 6–12 months. This period is when settlement talks intensify, so expect heightened volatility from April 2026 through the summer.
- Trial or settlement – ≈ 12‑18 months from filing – If the case does not settle, a bench trial is scheduled about 12‑18 months after the complaint, putting the trial window in **Q2‑Q3 2026. A settlement announcement at any point before the trial can cause a sharp price move in either direction, depending on the terms disclosed.
Trading implications
- Short‑term: Watch the mid‑September motion‑to‑dismiss deadline and any related court filings. A denial of the motion is a bullish catalyst; a grant is a bearish one. Expect a 10‑15 % price swing on the news flow, with the stock likely testing the $1.20‑$1.30 range (its recent support) if the motion is denied, or breaking below $1.00 if granted.
- Medium‑term: The class‑certification decision (late Oct‑Nov 2025) is the next major inflection point. A certification will open the door to a sizable settlement fund, supporting a breakout above the $1.40 resistance; a denial could trigger a 20 %‑30 % drop, potentially breaching the $0.90‑$0.85 support zone.
- Long‑term: Anticipate increased volatility from April 2026 onward as discovery and settlement talks progress. Position sizing should be tight around the discovery‑settlement window, with stop‑losses just below the $0.95‑$0.90 floor to protect against a surprise settlement or adverse court ruling.
Actionable take‑away: Keep a live watch on the U.S. District Court for the Southern District of New York docket for filing dates and hearing notices. If the motion‑to‑dismiss is denied or the class is certified, consider long‑biased entries on pull‑backs to the $1.20‑$1.30 zone; if the motion is granted or class certification is denied, look for short‑biased entries near $0.95‑$0.90 with a view to capture the downside ahead of the settlement‑trial window.