Core Viewpoint - The complaint against Smart Digital Media (SDM) alleges violations of federal securities laws, including false statements and failure to disclose significant risks related to market manipulation and fraudulent activities [2]. Group 1: Allegations and Violations - The complaint claims that SDM was involved in a market manipulation scheme that included misinformation on social media and impersonation of financial professionals [2]. - It is alleged that insiders used offshore accounts to facilitate the dumping of shares during a price inflation campaign [2]. - SDM's public statements failed to mention the risks of fraudulent trading and market manipulation, which could lead to a suspension of trading by the SEC and NASDAQ [2]. - The positive statements made by the defendants regarding SDM's business and prospects were misleading and lacked a reasonable basis [2]. Group 2: Stock Price Impact and Trading Suspension - On September 26, 2025, SDM's stock price dropped by 86.4%, closing at $1.85 per share, following a trading halt by NASDAQ due to volatility [3]. - The SEC suspended trading in SDM securities from September 29, 2025, to October 10, 2025, due to potential manipulation linked to social media recommendations [3]. - After the SEC suspension, NASDAQ also suspended trading in SDM securities pending further information, with no clear end to the suspension [3]. Group 3: Legal Proceedings - A court-appointed lead plaintiff will represent the interests of the class in the litigation, and any member of the class can move to serve as lead plaintiff [4]. - The law firm Faruqi & Faruqi encourages individuals with information about SDM's conduct to come forward, including whistleblowers and former employees [5].
INVESTOR NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Smart Digital