#USA #New York #Levi Korsinsky #iTonic Holdings #Pengfei Zhang

Investors Allege Manipulation of iTonic Holdings Shares

In a significant development for shareholders, a securities class action lawsuit has been launched against iTonic Holdings Ltd, formerly known as Pheton Holdings Ltd. The lawsuit, which has generated interest among investors who have suffered losses, revolves around alarming claims regarding the company’s public disclosures and alleged insider manipulation. The case names Pengfei Zhang, a director at iTonic and related to the company’s founder, as an individual defendant.

What Prompted the Lawsuit?

The legal action stems from a drastic decline in iTonic’s stock price, which plummeted by approximately 95% in a short span. Specifically, investors witnessed a fall from an intraday high of $32.00 on July 28, 2025, to a mere $1.65 by the next day. This dramatic drop raised concerns about the company’s integrity and transparency regarding its financial practices.

According to the lawsuit filed by the law firm Levi & Korsinsky, Pengfei Zhang, who has been a member of the board since March 2023, played a crucial role in overseeing the company's disclosures. It is alleged that during his tenure, the disclosures failed to address risks associated with possible manipulative practices that could affect the stock's value.

Key Allegations Against Pengfei Zhang

1. Oversight Responsibility: As a director, Zhang was responsible for the accuracy of SEC reports and market presentations. The lawsuit claims that he had the authority to prevent or rectify inaccurate filings made by the company.
2. Knowledge of Material Weaknesses: The company reportedly disclosed two major weaknesses in its internal control over financial reporting, including an absence of formal risk assessment policies. This raises questions about the company’s governance and oversight practice.
3. Omitting Risks: The complaint posits that disclosures made by Zhang and the board only offered vague warnings regarding market volatility but failed to highlight the specific risks of a targeted promotional scheme linked to fabricated acquisition rumors.
4. Involvement During Decline: Zhang remained on the board through the critical period that encompassed the stock's dramatic fall, implying a lack of preemptive measures to safeguard investor interests.

Opportunities for Affected Investors

Levi & Korsinsky urges investors who purchased iTonic securities between September 5, 2024, and July 29, 2025, to consider joining the class action lawsuit. The deadline for appointing a lead plaintiff is September 29, 2026. Eligible investors may still pursue claims even if they sold their shares at a loss.

The firm is recognized for its dedication to shareholder rights litigation and has recovered millions for investors across similar cases. They emphasize that there is no upfront cost; typically, these cases are handled on a contingency basis, meaning fees are only collected if a recovery is achieved.

Next Steps for Investors

Affected investors should gather their brokerage records indicating the purchase dates, share quantities, and corresponding prices. Levi & Korsinsky is offering a free evaluation for interested parties to assess their eligibility to participate in the lawsuit. This suit highlights the broader implications of corporate governance and the responsibilities shouldered by directors in ensuring financial transparency and accuracy to protect the interests of investors.

For more information or to discuss eligibility, investors can reach out directly to Levi & Korsinsky via email or phone.

Conclusion

This class action lawsuit against iTonic Holdings Ltd reflects an essential process for corporate accountability. As the case unfolds, it will become increasingly vital for investors to stay informed and proactive in safeguarding their financial interests. The results of this legal action could set a precedent for similar cases in the future, emphasizing the need for transparency in financial practices within publicly traded companies.