How likely is a settlement or resolution, and what timeline is expected for the case?

Settlement Likelihood & Expected Timeline

A securities‑class‑action filing is the first formal step in a potentially lengthy legal process. Historically, similar shareholder suits against mid‑cap energy‑infrastructure REITs (e.g., the “XIFR” peer group) have resolved either by settlement or dismissal 12 – 18 months after the complaint is served. The Gross Law Firm’s notice does not indicate any pre‑filing settlement talks, and the case‑specific facts (e.g., alleged misstatements about cash‑flow forecasts or asset‑valuation metrics) are typical of “complex” securities claims that often require extensive discovery. Consequently, the probability of a quick, under‑6‑month settlement is modest—roughly 20‑30%. The bulk of the probability mass (≈ 70%) points to a mid‑term resolution window of 12‑18 months, with the most common outcome being a negotiated settlement rather than a full trial verdict.

Trading Implications

• Short‑term: Expect heightened volatility and a modest downside pressure on XIFR as the market prices in legal‑risk uncertainty (the –70 sentiment score reflects a bearish tone). Defensive positioning—e.g., tightening stop‑losses or reducing exposure—may be prudent for the next 4‑6 weeks while the case moves through the initial pleading and discovery‑schedule phase.
• Mid‑term: If the case follows the historical 12‑18‑month path, the market will begin to price in the likelihood of a settlement. A mid‑term settlement (often at a modest cash component for claimants) could act as a catalyst, capping the downside and potentially sparking a short‑cover rally. Conversely, a protracted dispute or a court‑ordered dismissal could keep the stock on the lower side of its 200‑day moving average.

Actionable Take‑away: Keep a short‑term defensive bias (tight stops, reduced size) for the next 1‑2 months, but consider a long‑position with a 12‑month horizon if the stock stabilises around its 200‑day average and the case remains in the settlement‑negotiation phase. Monitoring court filings and any settlement‑negotiation updates will be key to adjusting exposure as the timeline unfolds.