The legal action centers on allegations that Ryde Group failed to disclose that its stock was the target of a coordinated pump-and-dump scheme. During the summer of 2024, the company’s share price surged over 500% despite a lack of corresponding operational growth. The complaint alleges that this artificial inflation was fueled by impersonators using stolen identities to circulate buy instructions across encrypted messaging platforms like WhatsApp and WeChat.

Forensic research firms publicly flagged the volatility on September 9, 2024, identifying the stock as a prime candidate for market manipulation just two days before the price cratered. Joseph E. Levi, an attorney representing the class, noted that the timing of the collapse raises significant questions regarding what the company knew about the trading activity in its shares. The lawsuit, filed in the United States District Court for the Southern District of New York, contends that shareholders absorbed substantial losses when the promotional activity finally unwound. Investors who bought during the specified period may be eligible to recover losses regardless of whether they still hold the securities.