Key Takeaways:
A new class action lawsuit was announced against Fitness Champs Holdings Ltd. (NASDAQ: FCHL) for alleged investor harm, even as the embattled stock surged 44.36% in after-hours trading.
"Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed," the firm stated in a press release.
The legal action follows a similar suit from Pomerantz LLP, which alleges FCHL was used in a pump-and-dump scheme that drove the stock to $7.20 on Sept. 19, 2025, before it crashed 84.6% to $1.07 just four days later. Despite the new lawsuit, FCHL shares rallied to $1.92 after closing the regular session down 16.35% at $1.33.
The extreme volatility and high short interest of 97.8% of the float highlight a intense battle between retail traders and short-sellers, with the lawsuits adding another layer of risk. The stock has lost 99.93% of its value over the past year.
The lawsuits center on allegations that impersonators posing as financial advisors used online forums and social media to artificially inflate the stock price, leaving retail investors with significant losses. Investors who purchased shares during the class period have until June 16 to seek lead plaintiff status in the Pomerantz case.
The Singapore-based sports education provider has a market capitalization of just $1.66 million. Its shares have traded in a wide 52-week range from $1.27 to $3,438. The stock's Relative Strength Index (RSI) stands at a low 28.82, suggesting it is in oversold territory.
The legal proceedings create a significant overhang for the company, with potential financial liabilities and reputational damage. Traders will be closely watching the stock's reaction and for any further developments in the class action lawsuits.
This article is for informational purposes only and does not constitute investment advice.
