The complaint targets iTonic Holdings Ltd., formerly known as Pheton Holdings Ltd., following claims that the company’s public disclosures ignored fraudulent promotional activity. According to the filing, the firm contends that the company’s securities were artificially inflated through social media misinformation and individuals posing as financial experts. This alleged scheme left investors vulnerable to extreme price volatility and unexpected trading halts, rendering the company's previous business projections materially misleading.

The lawsuit also points to the company’s historical associations, noting that its auditor and underwriters had previously participated in other foreign microcap offerings that became targets of similar manipulation claims. Investors who suffered losses during the specified period have until September 29, 2026, to petition the court to serve as lead plaintiff. While those who held shares during the class period may be eligible for recovery, the firm operates on a contingency fee basis, meaning legal costs are only recovered if the litigation succeeds.