The lawsuit, filed in New York, targets the $4.00-per-share IPO that raised $12 million. While the stock initially surged to $22.49 by September 11, 2024, it subsequently plummeted roughly 75% to $5.50, before sliding further to approximately $0.50. Plaintiffs argue that the prospectus ignored the specific dangers associated with low-float foreign micro-cap listings, where public floats often represent less than 10% of total shares.

Maxim Group faces scrutiny for its dual role as both underwriter and gatekeeper. According to the complaint, the firm collected a 7.5% discount on gross proceeds and an additional 5% of funds raised from referred investors. The filing cites the SEC’s 2025 focus on underwriters as critical gatekeepers in preventing pump-and-dump schemes, suggesting Maxim had the opportunity to correct registration statements before they reached the market. Investors who purchased RYDE securities between March 6, 2024, and September 11, 2024, have until November 9, 2026, to apply for lead plaintiff status in the ongoing litigation.