The complaint, filed by Robbins LLP, outlines a sophisticated pump-and-dump scheme that allegedly fueled an artificial price surge shortly after the company’s initial public offering. Shares of the skincare and cosmetics firm, previously traded under the ticker PPH, climbed from an IPO price of $4.00 to a peak of $41.49 on July 7, 2025. This surge occurred despite a lack of legitimate corporate developments to support such valuation.

According to the legal filing, the stock price was driven by social media misinformation and impersonators posing as financial professionals. The lawsuit claims Park Ha failed to disclose the risks associated with this fraudulent promotion or the fact that its IPO float was intentionally restricted to facilitate the scheme. The bubble burst on July 8, 2025, when the company’s market capitalization plummeted by over $1 billion in a single trading session, leaving the stock at $2.99. Affected investors have until September 28, 2026, to apply for lead plaintiff status in the ongoing litigation.