The complaint, Mundy v. Megan Holdings Limited, alleges that the company’s September 2025 initial public offering was built on a foundation of false and misleading documents. Investors claim that Megan Holdings, a Cayman Islands firm operating aquaculture subsidiaries in Malaysia, failed to disclose material weaknesses in its internal controls while allowing its stock to be artificially inflated through social media manipulation. The share price surged over 400% in early 2026 before plummeting to $0.28 per share in March.

Central to the suit are claims that the IPO underwriter, D. Boral Capital LLC, has a documented history of microcap offerings that suffered similar volatility-induced collapses. The lawsuit also targets the company’s auditor, WWC, P.C., asserting that the firm provided clean opinions despite having access to information regarding the company's financial instability. CEO Darren Hoo and CFO Ng Kai Tie are named as individual defendants responsible for the integrity of the offering materials. Investors who suffered losses during the class period have until September 8, 2026, to move the court for appointment as lead plaintiff in the ongoing proceedings.