The litigation, filed by Robbins LLP, concerns investors who purchased securities between December 27, 2024, and July 8, 2025. According to the complaint, the skincare and O2O beauty retailer utilized an IPO structure with an intentionally low public float to facilitate market manipulation. The suit claims that individuals impersonating financial professionals used social media misinformation to manufacture artificial demand, driving the stock from its $4.00 IPO price to an unsustainable peak of $41.49 by July 7, 2025.

Plaintiffs argue that the company failed to disclose these promotional activities or the risks associated with the artificial trading activity. The scheme unraveled on July 8, 2025, when the stock price plummeted to $2.99. Investors who sustained losses during the defined class period are currently being sought to serve as lead plaintiffs, though legal counsel notes that participation in the class does not require formal appointment by the court. Robbins LLP is managing the case on a contingency basis, meaning no upfront fees are required from participating shareholders.