The complaint targets CEO Darren Hoo and CFO Ng Kai Tie, alleging they wielded their control over the company to disseminate false information while failing to disclose critical risks. Hoo, who controlled nearly 62% of outstanding shares following the IPO, allegedly possessed the authority to prevent the fraud but instead oversaw a period of artificial inflation. Between February 25 and March 25, 2026, the stock surged over 400% on the back of social media misinformation before collapsing on March 26, leaving the share price at just $0.28.
Beyond the individual executives, the litigation names auditor WWC, P.C. and underwriter D. Boral Capital LLC as defendants. The suit asserts that the company’s IPO prospectus provided only boilerplate warnings, failing to disclose that the firm faced a genuine risk of market manipulation and internal control failures. Under Section 20(a) of the Securities Exchange Act, the plaintiffs aim to hold these control persons liable for the catastrophic losses suffered by shareholders who purchased securities during the class period of September 26, 2025, through March 25, 2026.
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