Faruqi & Faruqi Investigates Smart Digital Securities Fraud, Stock Plummets 86.4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Stock Collapse: Smart Digital's stock price plummeted 86.4% to $1.85 per share on September 26, 2025, following a NASDAQ trading halt due to volatility, indicating severe market concerns regarding its financial health.
- SEC Investigation: The SEC suspended trading of SDM securities from September 29 to October 10, 2025, due to potential market manipulation, highlighting significant legal risks that could impact the company's future financing capabilities.
- Legal Action: Faruqi & Faruqi is investigating potential claims against Smart Digital and reminds investors to apply to be lead plaintiffs in a class action by March 16, 2026, which could affect the company's reputation and shareholder rights.
- False Statement Allegations: The lawsuit alleges that Smart Digital and its executives violated federal securities laws by failing to disclose risks of market manipulation and misinformation, potentially leading to significant investor losses and exacerbating market distrust.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
