The complaint filed by Robbins LLP alleges that between September 5, 2024, and July 29, 2025, the company failed to disclose that its stock price was being artificially inflated by social media misinformation and individuals impersonating financial professionals. These promoters reportedly circulated fabricated rumors regarding a potential acquisition by Gilead Sciences, Inc., fueling a frenzy that pushed the stock from an IPO price of $4.00 to an intraday high of $32.00.
Investors Face Losses in iTonic Holdings Pump-and-Dump Class Action
A securities class action lawsuit targets iTonic Holdings Ltd.—formerly known as Pheton Holdings Ltd.—following allegations that the company served as the centerpiece for a sophisticated pump-and-dump scheme. The litigation centers on a dramatic stock collapse that saw the company’s market capitalization plummet from $765 million to $40.8 million in a single day.
On July 29, 2025, the scheme unraveled. After an initial 11% drop triggered a volatility halt, the stock plummeted 89% upon resumption of trading. By the close of the session, the shares had fallen 95% to $1.65. The lawsuit claims that both the auditor and underwriter defendants had prior involvement with other microcap offerings that became targets of similar manipulative tactics. Investors who purchased securities during the class period have until September 28, 2026, to apply for lead plaintiff status.
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