A securities class action alleges that iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) failed to disclose the allegedly documented microcap manipulation history of the gatekeepers who took the company public.

NEW YORK, Aug. 6, 2026 /PRNewswire/ — SueWallSt notifies investors in iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) (NASDAQ: ITOC, PTHL) that a securities class action has been filed on behalf of shareholders who acquired iTonic securities between September 5, 2024 and July 29, 2025. Find out if you might be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

iTonic shares reached an intraday high of $32.00 on July 28, 2025, then closed at approximately $1.65 the following session, against a $4.00 IPO price that raised $9,000,000 in gross proceeds. LEAD PLAINTIFF DEADLINE: September 29, 2026.

What the Company Disclosed

SEC filings stated that “there have been instances of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with a number of recent initial public offerings, especially among companies with relatively smaller public floats.” The filings also identified two material weaknesses tied to a “lack of sufficient personnel with appropriate levels of accounting knowledge and experience” and a “lack of formal policies and procedures to establish risk assessment processes and an internal control framework,” with Section 404 management reporting deferred to a later annual report.

What Plaintiffs Allege Was Missing

The complaint challenges the sufficiency of that language, contending it described volatility as a hypothetical market condition rather than a specific, foreseeable manipulation risk to which iTonic’s small float, dual-class structure, and 95.97% concentration of voting power allegedly exposed public shareholders.

Disclosure Gaps Alleged

• No disclosure that the audit firm had served other foreign microcap issuers later targeted by comparable manipulation patterns, including one whose shares allegedly fell roughly 95% in a single session in April 2025 after fabricated acquisition rumors.
• No disclosure of the underwriters’ repeated involvement in foreign microcap offerings that allegedly experienced extreme volatility and trading suspensions.
• No disclosure warning that promotional activity in online forums and chat groups could drive iTonic pricing absent any material corporate development.
• No disclosure addressing the possibility of repeated NASDAQ volatility halts, which the complaint states occurred on July 29, 2025.

“Generic risk factor language cannot substitute for disclosing specific, known problems, and the complaint here alleges iTonic’s filings warned about microcap volatility in the abstract while omitting the concrete manipulation exposure investors later encountered,” — Joseph E. Levi, Esq.

Submit your information here or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the iTonic Lawsuit

Q: What court was the iTonic class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the iTonic lawsuit? A: The complaint names iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley, along with the Company’s IPO auditor and underwriters.

Q: What specific misstatements does the iTonic lawsuit allege? A: The complaint alleges the Company made materially false or misleading statements and omissions regarding the risk of market manipulation in its shares and the profile of its offering gatekeepers during the Class Period.

Q: What is the iTonic lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is September 29, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What do iTonic investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my iTonic shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallS
Fax: (212) 363-7171

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SOURCE SueWallSt.com