Robbins LLP Alerts Shareholders of Smart Digital Group's Securities Class Action Lawsuit

On January 14, 2026, Robbins LLP, a prominent law firm specializing in shareholder rights, notified shareholders about a class action filed against Smart Digital Group Limited (NASDAQ: SDM). The lawsuit affects all individuals who bought or received shares of Smart Digital between May 5, 2025, and September 26, 2025. Smart Digital is known for its internet media services, business consulting, and event planning across Mainland China and Macau.

Allegations of Market Manipulation

The lawsuit points to severe allegations that executives and affiliates of Smart Digital participated in extensive market manipulation tactics. The complaint outlines that insiders contributed to a fraudulent promotion scheme misleading investors via social media. This scheme involved impersonators posing as financial professionals to disseminate misleading information about the company's stock.

Additionally, the complaint states that insiders potentially utilized offshore or nominee accounts to offload shares during a campaign designed to inflate stock prices artificially. Notably, the public disclosures regarding risks were lacking, failing to mention the dangers posed by such manipulative practices. These omissions allegedly created an environment where Smart Digital’s stocks became uniquely vulnerable to trading suspensions by regulators like the SEC and NASDAQ.

The precarious situation escalated dramatically on September 26, 2025, when Smart Digital’s share price plummeted by an astounding 86.4%, falling to $1.85 per share. This collapse occurred shortly after trading was temporarily halted by NASDAQ due to excessive volatility. The SEC responded promptly, suspending trading in Smart Digital’s securities for a period ranging from September 29 to October 10, 2025, due to concerns over possible market manipulation connected to social media promotions. Consequently, NASDAQ further suspended trading on October 11, 2025, pending further investigations.

How to Participate in the Class Action

Shareholders who may want to lead the class action must submit court documents by March 16, 2026. While serving as a lead plaintiff offers one the chance to influence legal proceedings on behalf of the affected group, it is crucial to note that participation in the case is not a prerequisite for recovering losses. Those choosing to abstain can simply remain inactive class members entitled to their share of any potential settlement.

Robbins LLP operates on a contingency fee basis, meaning that clients incur no cost unless they receive a recovery, making this litigation accessible without financial risk to the shareholders.

About Robbins LLP

Founded in 2002, Robbins LLP has established a sterling reputation in shareholder advocacy, focusing on recovering losses while promoting accountability among corporate leaders. The firm aims to enhance corporate governance and strives to protect investors’ rights in the financial landscape.

For those wishing to keep informed about developments in the Smart Digital Group litigation or other corporate misdeeds, signing up for alerts from Robbins LLP is highly recommended. This initiative ensures that stakeholders stay updated and can act timely when needed.

In summary, shareholders of Smart Digital Group Limited are currently faced with significant legal measures following serious allegations against the company. The involvement of Robbins LLP marks the beginning of a possible road to justice for those affected by the insiders' actions, with the potential for substantial recoveries as the case unfolds.