Core Viewpoint - A class action lawsuit has been filed against Smart Digital Group Limited (SDM) for allegedly misleading investors during a specific class period, leading to significant financial losses due to market manipulation and fraudulent activities [1][3]. Group 1: Lawsuit Details - The lawsuit is filed in the United States District Court for the Southern District of New York, under the case name Dixit v Smart Digital Group Limited, et.al, and covers individuals who purchased SDM securities between May 5, 2025, and September 26, 2025 [1]. - Investors have until March 16, 2026, to apply to serve as lead plaintiff in this action [2]. Group 2: Allegations Against the Company - Defendants are accused of making materially false and misleading statements and failing to disclose adverse facts about SDM's business and operations [3]. - Specific allegations include: 1. Involvement in a market manipulation scheme using social media misinformation [3]. 2. Use of offshore accounts for coordinated share dumping during a price inflation campaign [3]. 3. Omission of risks related to fraudulent trading and market manipulation in public statements [3]. 4. Unique risk of trading suspension by the SEC and NASDAQ due to these activities [3]. 5. Misleading positive statements about the company's business and prospects [3]. Group 3: Stock Price Impact - On September 26, 2025, SDM's stock price plummeted by 86.4%, closing at $1.85 per share, following a trading halt by NASDAQ due to high volatility [4]. - The SEC suspended trading in SDM securities from September 29, 2025, to October 10, 2025, due to potential manipulation linked to social media recommendations [5]. - Following the SEC suspension, NASDAQ also halted trading in SDM securities pending further information [5].
Wolf Haldenstein Adler Freeman & Herz LLP announces that it has filed a class action lawsuit against Smart Digital Group Limited (NASDAQ: SDM)