1. They are totally f*cking us over. In that case, kiss your money goodbye.
2. They will release a press update which would defend themselves substantially. Stock price bumps back, shorts cry.
3. Most likely, they relaese a press update that fights back, however reputation and market sentiment will be against this stock. Price remains depressed for a few years, despite whatever the company does.
Take your pick.
short of the SEC coming out with a public statement giving them a clean bill of health, this one is done. There is nothing Management can say to recoup the loses today. My guess, is it opens much lower after the halt. Now, if they really do make what they say they do, then their should be no problem with them buying out shareholders and taking this private. That would be your best bet.
Sentiment: Strong Sell
I agree. Even if they are innocent people will be afraid to touch this as the group that came out with fraud charges probably did not do so lightly-they could face a big law suit if they are wrong, so I am betting the group making the charge knows what they speak of.
It will be #3. Regardless of what the release says (and of course they will say they are 100% innocent) the price will be depressed for a long time due to the issue of trust. The price may pop upon such a release but betting it falls back off the cliff not too long thereafter (even if they really are innocent).