The complaint claims Megan Holdings failed to disclose that its stock price was being artificially inflated through social media misinformation and impersonators posing as financial professionals. Plaintiffs assert that the company omitted critical risks regarding potential trading suspensions and volatility, while also suffering from material weaknesses in its accounting and financial reporting processes. The allegations extend to the company's IPO underwriter, DBC, which the lawsuit claims has a history of managing microcap offerings plagued by similar market manipulation tactics.

Shareholders who incurred losses during the specified class period have until September 8, 2026, to seek appointment as lead plaintiff. Participation in the litigation carries no upfront cost or obligation, and registered investors will receive ongoing case updates through the firm’s monitoring software. The Gross Law Firm, based in New York, is spearheading the action to recover damages for those affected by the company's alleged failure to maintain transparent business practices.