Ostin(US:OST) Prnewswire·2026-02-18 21:47Core Viewpoint - A class action lawsuit has been filed against Ostin Technology Group Co., Ltd. (NASDAQ: OST) for allegedly engaging in a pump-and-dump scheme that defrauded investors, resulting in significant financial losses [1]. Allegations - The lawsuit alleges that from April 2025, OST's co-CEO Lai Kui Sen and co-conspirators orchestrated a fraudulent sequence of securities offerings, placing the majority of OST shares in the hands of at least fifteen co-conspirators for minimal or no cost [1]. - The U.S. Department of Justice unsealed a criminal indictment on September 12, 2025, charging Lai Kui Sen and financial advisor Yan Zhao with conspiracy to commit securities fraud and wire fraud, with the scheme netting over $110 million in illicit proceeds [1]. - The fraudulent promotional campaign inflated OST's market capitalization from approximately $22 million (stock price of $0.78 on April 14, 2025) to over $1 billion (peak stock price of $9.40 on June 26, 2025) [1]. Financial Impact - On June 26, 2025, OST investors faced devastating losses, with over $950 million (more than 94%) of OST's market capitalization wiped out in a single day as the stock price plummeted from an intraday high of $9.40 to a closing price of $0.55 [1].