Smart Digital Group Faces Class Action for Market Manipulation, Stock Plummets 86.4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Globenewswire
- Class Action Filed: Wolf Haldenstein Adler Freeman & Herz LLP has initiated a class action lawsuit in the Southern District of New York against Smart Digital Group Limited on behalf of investors who acquired securities between May 5, 2025, and September 26, 2025, highlighting serious concerns over potential fraudulent activities.
- Stock Price Collapse: On September 26, 2025, Smart Digital's stock price plummeted to $1.85 per share, an 86.4% drop, following a trading halt by NASDAQ due to unusual volatility, indicating severe market apprehension regarding the company's financial stability.
- Regulatory Intervention: The SEC suspended trading of SDM securities from September 29 to October 10, 2025, citing “potential manipulation,” which exacerbates the legal risks and trust crisis facing the company in the market.
- Insider Trading Allegations: The lawsuit alleges that insiders engaged in market manipulation via social media, failing to disclose significant risks associated with trading, further intensifying investor confidence issues regarding the company's future.
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.
