The regulatory scrutiny centers on the company’s revenue recognition practices and financial reporting transparency. According to filings, the U.S. Securities and Exchange Commission has been investigating these areas since at least late 2025. The recent downward revision of the company's financial health on September 16, 2026, triggered an immediate market reaction, with research firms slashing price targets by as much as 70%.

Levi & Korsinsky is now evaluating whether the company provided adequate disclosures to investors regarding the severity of the regulatory probe and its impact on financial stability. The firm is inviting shareholders who incurred losses to review their legal options. Participation in the investigation does not require court appearances, and potential recovery claims are managed on a contingency basis, meaning no upfront costs are required from affected investors.