The lawsuit, filed in the United States District Court for the Southern District of New York, centers on allegations that Park Ha’s registration statement omitted critical details regarding its share structure. Plaintiffs contend the company maintained a public float of less than 5%—specifically 1,200,000 shares out of 26,200,000—to facilitate a pump-and-dump scheme. While the company’s IPO priced at $4.00 per share, the stock reached an intraday high of $41.49 on July 7, 2025, before plummeting to $2.99 the following day.

Legal counsel Joseph E. Levi, of Levi & Korsinsky, LLP, asserts that the offering documents failed to disclose fraudulent promotional activities and presented risks of stock price manipulation as merely hypothetical. The complaint argues that the company’s implied valuation of $96 million at the time of the IPO bore no relation to the subsequent market run-up. Investors seeking to participate in the class action are not required to hold their shares to be eligible for potential recovery, provided they can document their losses from the class period.