The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims that Megan Holdings misled investors regarding its proprietary Smart Farming System and international expansion plans. While the company’s IPO prospectus touted a technological edge in aquaculture, the complaint alleges these promises masked a coordinated market manipulation scheme. According to court filings, anonymous actors used online forums to drive MGN shares from $1.23 on February 25, 2026, to an intraday high of $5.18 on March 25, 2026, despite a lack of material operational progress.

The collapse occurred on March 26, 2026, when the stock price plummeted to $0.28. The complaint names CEO Darren Hoo, CFO Ng Kai Tie, auditor WWC, P.C., and sole underwriter D. Boral Capital LLC as defendants, accusing them of failing to disclose material weaknesses in internal controls and the specific risks of market manipulation. The litigation highlights a pattern involving D. Boral Capital LLC, noting the underwriter’s involvement in previous microcap IPOs that suffered similar rapid devaluations. Investors who purchased securities between September 26, 2025, and March 25, 2026, are eligible to join the action.