Megan Holdings faces securities class action after 93.4% March stock collapse

Megan Holdings Limited and certain executives are facing a securities class action alleging the company failed to disclose material information during the class period from September 26, 2025 through March 25, 2026, including in connection with its September 26, 2025 IPO. Faruqi & Faruqi said investors have until September 8, 2026 to seek appointment as lead plaintiff in the federal case. The complaint alleges Megan was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals, while its public statements and risk disclosures omitted the realized risk of fraudulent trading or market manipulation used to drive the stock price. It also alleges the company’s sole IPO underwriter, DBC, had conducted numerous microcap IPOs that later suffered volatility-induced declines tied to market manipulation schemes, and that Megan had material weaknesses in internal accounting and financial reporting controls. The case centers on a coordinated afterhours dump of Megan shares on March 26, 2026. The stock opened at $0.423 per share on volume of about 6.8 million shares, with Nasdaq halting trading multiple times throughout the day, and closed at $0.28 per share on volume of 39,239,600 shares. The move represented a drop of $3.96, or 93.4%, from the prior day’s close.