#United States #New York #Securities Class Action #BYAH #Park Ha Technology

Overview of the Lawsuit

Investors in Park Ha Biological Technology Co., Ltd. (NASDAQ: BYAH) are being alerted by Levi & Korsinsky, LLP regarding a securities class action impending against the company. Shareholders who bought securities between December 27, 2024, and July 8, 2025, are encouraged to take note, as this could enable them to recover some of their financial losses. The firm is urging potential claimants to reach out for more information.

On July 8, 2025, BYAH shares fell dramatically by about 93%, leading to a loss of over $1 billion in market capitalization in just one day. This dramatic collapse has raised significant concerns among shareholders and prompted legal action. Investors interested in participating as lead plaintiffs in this case need to file their claims by September 28, 2026.

Who Are the Defendants?

The lawsuit names three individuals: Xiaoqiu Zhang, Founder, Chairperson, and CEO of Park Ha; Xiaoyan Zhu, the Chief Financial Officer and Director; and Li Wang, a Director since July 2023. Each of these executives has been implicated for their roles in the company during this fraught period. Specifically, they are accused of exerting control over disclosures made by the company, leaving investors exposed.

Legal Grounds for the Class Action

The class action is being built under Section 20(a) of the Exchange Act and Section 15 of the Securities Act. This legal framework allows for individual corporate officers and directors to be held accountable for misleading public filings based on their control and authority over those disclosures. In the case of Park Ha, the executives are alleged to have had the power to manipulate the content of SEC reports and public statements, with their duty to ensure that these disclosures were never misleading or incomplete.

Allegations Against Senior Executives

• - Control over Public Statements: The complaint indicates that these executives had significant authority over the company’s public disclosures during a critical time.

• - Registration Statement Responsibilities: Each of the executives signed the registration statement related to the company’s initial public offering on December 27, 2024, making them potentially liable for any inaccuracies contained within.

• - Manipulation of Trading Activity: In the filings, it was alleged that known manipulative trading activities were omitted, exposing shareholders to undisclosed risks. This failing to be transparent is one of the main concerns that led to the plunge in stock value.

• - Failure to Act After Stock Collapse: The executives reportedly didn’t issue any statements addressing the catastrophic decline on July 8, 2025, which further exacerbated investor distress.

Statement from Legal Counsel

Joseph E. Levi from Levi & Korsinsky articulated the seriousness of the allegations: "Corporate officers have a duty to ensure their companies' public statements are accurate and complete... the individuals who signed Park Ha Biological Technology Co., Ltd.'s registration statement had the authority to address disclosures that allegedly omitted known manipulation risk."

Next Steps for Investors

Investors who believe they may qualify to participate in the lawsuit should act quickly to gather relevant brokerage records, such as purchase dates, quantities of shares bought, and prices paid. Steps taken early will solidify their eligibility as potential claimants, with Levi & Korsinsky offering free consultations to assist in evaluating investors' circumstances.

Answers to Common Questions

• - Who are the Defendants? The primary defendants include the company itself and the three senior executives mentioned earlier who were involved in the signing of crucial SEC filings.

• - Where was the lawsuit filed? The case is underway in the United States District Court for the Southern District of New York, reflecting its importance within the regulatory landscape.

• - Am I eligible to join the lawsuit? Investors who purchased shares during the specified timeframe and experienced losses may be eligible, irrespective of whether they still hold the stock.

• - What does being a lead plaintiff mean? The lead plaintiff is a representative chosen by the court based on documented financial losses, typically granting them oversight over case proceedings.

• - What should I do right now? Collect necessary documents and contact the firm for a no-obligation evaluation. Delaying action might undermine potential recovery options.

• - Will it cost me anything to participate? Generally, there are no upfront costs in securities class actions, as these cases are typically handled on a contingency basis.

Conclusion

Investors affected by the BYAH situation should stay informed and proactive. As more developments unfold, awareness and participation could be pivotal in mitigating the substantial losses many have faced. For further inquiries, interested parties can reach out to Levi & Korsinsky at [email protected] or call (212) 363-7500.