iTonic Holdings Ltd faces a securities class action alleging its shares collapsed 95 percent in a single session after an alleged pump-and-dump scheme. The lawsuit covers investors who bought Pheton Holdings securities between September 5, 2024 and July 29, 2025, with a lead plaintiff deadline of September 28, 2026.
iTonic Holdings Ltd faces a securities class action alleging its shares collapsed 95 percent in a single session after a pump-and-dump scheme. The lawsuit covers investors who bought Pheton Holdings securities between September 5, 2024 and July 29, 2025.
"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," Brian J. Robbins, founding partner at Robbins LLP, said.
The company, which changed its name to iTonic Holdings and its ticker to ITOC in January, completed its Nasdaq IPO on September 5, 2024, selling 2.25 million Class A ordinary shares at $4.00 each and raising about $9 million. The stock climbed to an all-time intraday high of $32.00 on July 28, 2025, before collapsing the next day to close at $1.65, cutting market value to $40.8 million from $765 million.
On July 29, 2025, Pheton shares sank 11 percent and triggered a volatility halt at about 12:26 p.m. EDT. When trading resumed roughly 90 minutes later, the plunge reached 89 percent before another halt, and the stock was halted at least eight more times as the decline extended to 95 percent.
The complaint alleges promoters impersonating financial professionals touted the stock in online forums and chat groups, circulating fabricated rumors that Gilead Sciences planned to acquire or partner with the company. The company said on August 1, 2025 that its share price may have been influenced by false rumors and that it had no contact with Gilead.
Pheton, a Cayman Islands holding company operating through Beijing Feitian Zhaoye Technology in China, sells FTTPS, a brachytherapy treatment planning system used in radioactive particle implantation for cancer treatment. The company reported revenue of $628,591 for 2023, and its IPO materials cited a Frost & Sullivan report projecting the Chinese treatment planning system market would reach $320.7 million in 2026.
Investors seeking to serve as lead plaintiff must file papers with the court by September 28, 2026. The lawsuit names the company, chief executive Jianfei Zhang, chief financial officer Zhixin Li, director Pengfei Zhang, auditor Marcum Asia CPAs LLP, and IPO underwriters Cathay Securities Inc. and Dominari Securities LLC as defendants.
The case asserts claims under the Securities Act of 1933 and the Securities Exchange Act of 1934, alleging the IPO registration statement and later disclosures failed to flag the heightened risk of market manipulation tied to the company's low float and China-based structure. A ruling against the company could expose it to shareholder compensation and regulatory scrutiny, while the outcome may shape how courts treat rumor-driven trading in small-cap listings.
This article is for informational purposes only and does not constitute investment advice.
