The litigation, filed by Levi & Korsinsky, LLP, targets the company’s activities between September 5, 2024, and July 29, 2025. During this period, iTonic shares surged from an IPO price of $4.00 to an intraday peak of $32.00, despite a reported lack of legitimate business developments. The complaint alleges that promoters circulated false claims regarding a potential deal with Gilead Sciences, driving the valuation to unsustainable levels before the stock plummeted to $1.65.

Following the crash, iTonic acknowledged in an August 2025 press release that its share price had been influenced by these false rumors, confirming it had no contact with Gilead. The lawsuit contends that internal risk disclosures failed to warn shareholders of the manipulation campaign, noting that the company had identified material weaknesses in its financial reporting controls prior to the offering. Investors seeking to participate in the class action must meet the September 29, 2026, lead plaintiff deadline.