Core Viewpoint - A class action has been filed against Charming Medical, Limited (NASDAQ: MCTA) for allegedly engaging in a fraudulent stock promotion scheme that misled investors and artificially inflated its stock price [1][2]. Allegations - The complaint alleges that Charming Medical failed to disclose involvement in a fraudulent stock promotion scheme that utilized social media misinformation and impersonated financial professionals [2]. - Insiders and affiliates reportedly used offshore or nominee accounts to facilitate the coordinated dumping of shares during a price inflation campaign [2]. - The company's public statements and risk disclosures did not mention the false rumors and artificial trading activity that were driving the stock price [2]. Stock Price Surge - In the weeks leading up to November 12, 2025, Charming's share price increased from the initial public offering price of $4.00 to an all-time high of $29.36 per share, despite a lack of fundamental news justifying such a rise [3]. - Investigations revealed that the stock was subject to an illicit social-media-based promotion scheme that created a buying frenzy among retail investors through sensational but baseless claims [3]. - On November 12, 2025, the SEC halted trading of Charming's stock, which remains suspended due to the company's failure to provide required information to regulators [3]. Class Action Participation - Shareholders interested in serving as lead plaintiffs must submit papers to the court by February 17, 2026, but participation is not required to be eligible for recovery [4]. - Individuals can choose to remain absent class members if they do not wish to take action [4]. Legal Representation - All representation in the class action is on a contingency fee basis, meaning shareholders pay no fees or expenses [5].