Core Viewpoint - A class action lawsuit has been filed against Smart Digital Group Limited (SDM) due to allegations of securities fraud during a specified class period from May 5, 2025, to September 26, 2025, with investors having until March 16, 2026, to file a lead plaintiff motion [1]. Trading Activity and SEC Involvement - On September 26, 2025, NASDAQ halted trading of SDM stock after a significant spike in trading activity, with over 270,000 orders in just one minute, representing approximately 30% of the average daily volume. The stock price fell to $1.85 per share, an 88% decrease from the previous day's closing price [3]. - The SEC announced a temporary suspension of trading in SDM from September 29, 2025, to October 25, 2025, due to potential market manipulation linked to social media recommendations aimed at artificially inflating the stock price and volume [4]. Allegations in the Lawsuit - The lawsuit claims that during the class period, SDM's management made materially false and misleading statements and failed to disclose significant adverse facts about the company's operations and prospects. Key allegations include: 1. Involvement in a market manipulation scheme using social media misinformation and impersonators posing as financial professionals [5]. 2. Insiders allegedly using offshore accounts to facilitate coordinated share dumping during a price inflation campaign [5]. 3. Omission of risks related to fraudulent trading and market manipulation in public statements and risk disclosures [5]. 4. Unique risk of sustained trading suspension by the SEC and NASDAQ due to these issues [5]. 5. Misleading positive statements regarding the company's business and operations lacking a reasonable basis [5].
Law Offices of Howard G. Smith Encourages Smart Digital Group Limited (SDM) Shareholders To Inquire About Securities Fraud Class Action