The complaint, filed by Levi & Korsinsky, LLP, characterizes the company’s NASDAQ debut as a vehicle for market manipulation. While Megan Holdings promised to modernize Malaysian shrimp farming using proprietary technology, the lawsuit contends these operations were largely nonexistent. Instead, the firm allegedly relied on online impersonators to create a buying frenzy that pushed share prices up by over 400 percent, peaking at $5.18 on March 25, 2026, despite a total lack of operational milestones.
Investors Face Massive Losses Following Alleged Megan Holdings Scheme
A class action lawsuit filed in New York alleges that Megan Holdings Limited operated as a shell company to facilitate a coordinated pump-and-dump scheme. The litigation targets the aquaculture firm’s leadership and underwriters, claiming they misled investors through fabricated operational growth and baseless stock promotion between September 2025 and March 2026.
The collapse occurred on March 26, 2026, when the stock price plummeted 93.4 percent to $0.28, effectively wiping out the capital of retail investors who bought in following the $5 million IPO. The legal action names CEO Darren Hoo, CFO Ng Kai Tie, and the underwriter D. Boral Capital LLC as defendants, citing material weaknesses in internal financial controls. Investors seeking to participate in the class action or pursue lead plaintiff status must file by September 8, 2026.
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