The legal action, spearheaded by Robbins LLP, targets losses incurred between September 26, 2025, and March 25, 2026. According to the complaint, the Malaysia-based aquaculture firm failed to disclose that its stock price was being artificially inflated through social media misinformation and impersonators posing as financial experts. The lawsuit further asserts that Megan Holdings suffered from material weaknesses in its internal accounting, while its IPO underwriter, DBC, allegedly had a history of managing microcap offerings prone to manipulation-induced volatility.

This lack of transparency reached a breaking point on March 26, 2026, when the stock price plummeted from $4.24 to just $0.28 per share. The company has failed to recover since the collapse. Shareholders looking to serve as lead plaintiff in the litigation must file their applications by September 4, 2026. Participation is not mandatory for recovery, and the firm is operating on a contingency fee basis for those involved.