Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from [Unidentified Analyst - Stephens Inc.].
Unidentified Analyst - Stephens Inc.
Just a few housekeeping questions right off the bat. How should we look for sales and gross margin going forward for the rest of the year here for your guys? Should we expect a pretty decent pickup here and what's the order of magnitude of the increase, if any?
Myron Levy
We expect that our third quarter and fourth quarter volume will increase as we progress forward. The third will be better than the second, and the fourth is going to be better than the third. As Neil has mentioned, Farmingdale is completely closed, which had been a thorn in our side, and we've made other cost cuts in the company as well; some will be reflected in the third and fourth quarter. And we will have volume increases on the revenue side, so we'll get more absorption of the overhead. So we see continuing improvement as we go forward in the third and fourth quarter.
Unidentified Analyst - Stephens Inc.
And any ballpark expectations as to how much to expect for legal costs in the back half of the year here?
Myron Levy
Let me say where we are. Where we sit today in terms of legal, we still have the class action suit and the derivative suit. It's still out there. And the only other legal issue, which was discussed on a prior call, is the suit between us and Chubb, the insurance carrier, in connection with our insurance.
The class action suits are starting to heat up a bit. We don't see very significant charges in connection with the insurance suit, if you will. The class actions suits are really indeterminable. We don't see them anywhere near the magnitude of prior expenses prior to the settlement with the government at all, but they could be anywhere in the neighborhood from $60,000 to $100,000 in a month. But we really don't know; it all depends on, in this case, the plaintiffs.
Unidentified Analyst - Stephens Inc.
The other question being kind of just a little bit, I guess, more color on you guys' sale process here. I mean, you guys announced back in September that you guys kind of were working with Jefferies to kind of look at some strategic alternatives here. Why has kind of the process taken over six months now? It seems like a fairly long period of time for a deal of this size. Just kind of any color on that?
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