The legal action, filed by Pomerantz LLP, alleges that Pheton officers, directors, and underwriters—including Marcum Asia CPAs LLP, Cathay Securities, and Dominari Securities—engaged in a coordinated pump-and-dump operation. According to the complaint, promoters posed as financial advisors to circulate baseless claims, specifically citing false rumors regarding a buyout by Gilead Sciences, Inc. The scheme unraveled on July 29, 2025, triggering a massive sell-off that devastated shareholders.
Investors Target iTonic Holdings Over Alleged Pump-and-Dump Scheme
A federal class action lawsuit now targets iTonic Holdings Ltd, formerly Pheton Holdings, following a catastrophic stock collapse that wiped out 95% of the company’s market value in a single day. Investors claim the firm’s leadership orchestrated a fraudulent scheme involving fabricated acquisition rumors to artificially inflate share prices.
Those who acquired Class A ordinary shares during the designated class period have until September 28, 2026, to petition the court to serve as Lead Plaintiff. Interested parties are directed to contact Danielle Peyton at Pomerantz LLP to coordinate their participation in the ongoing litigation.
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