#USA #New York #Levi Korsinsky #iTonic Holdings #iTonic lawsuit

Investors Urged to Lead Class Action Against iTonic Holdings

The recent announcement from Levi & Korsinsky, LLP has drawn significant attention to the continuing legal issues facing iTonic Holdings Ltd, previously known as Pheton Holdings Ltd. Investors with losses in the company's stocks are being prompted to step forward and potentially lead a securities class action against the firm.

Background of the Case

In a fresh allegation of securities fraud, the complaint has named Pengfei Zhang, a director at iTonic Holdings and brother of the firm’s CEO, as one of the key defendants. From September 5, 2024, to July 29, 2025, the lawsuit contends that significant public disclosures were misleading. It is alleged that these disclosures ignored the manipulation risks associated with trading iTonic’s shares, which plummeted approximately 95% in value during the defined period.

As reported, iTonic's shares fell dramatically from a high of $32.00 in late July 2025 to a mere $1.65 by July 29 of the same year, indicating that investors might have been misled about the company’s operations and financial health. The warning signs about potential manipulation were reportedly present, yet unaddressed.

Pengfei Zhang's Role

Zhang's influence over iTonic’s public disclosures is critical to the case, as he reportedly oversaw the company’s SEC reports and public announcements. The complaint specifies that he had significant control over the information shared with the public, possibly failing to act on or correct misleading statements, which could have prevented the dramatic share drop.

The complaint outlines several areas of concern related to governance during the reporting period, including:

• - Allegedly receiving advance copies of material disclosures that he should have corrected if inaccuracies were present.
• - Serving on a board that openly acknowledged weaknesses in internal financial control systems, indicating a lack of proactive oversight.
• - Failing to disclose the risks posed by what plaintiffs describe as a coordinated campaign to manipulate the market through false acquisition rumors.

Legal Implications

The case revolves around accusations that may lead to significant financial repercussions for not just iTonic Holdings but also its directors, including Zhang. Under U.S. securities laws, directors and officers are accountable for the accuracy of corporate disclosures, raising critical questions about due diligence performed by iTonic’s board.

Investigating claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, the lawsuit allows affected investors to seek reparations not just from iTonic but from individual defendants as well.

How Investors Can Participate

Eligible parties include all investors who acquired iTonic's securities within the specified period and experienced financial losses. Those interested in participating in the action should begin gathering their brokerage records, which document their purchase dates and transaction details.

Levi & Korsinsky urges affected investors to act quickly, as the deadline to apply as lead plaintiffs in this case is set for September 29, 2026. A lead plaintiff will serve a vital role in overseeing the proceedings on behalf of the class, and while being appointed doesn’t promise higher returns, it allows for a significant voice in the case's management.

Engagement with Levi & Korsinsky is straightforward, involving no upfront costs since such litigation is often conducted on a contingency basis.

Conclusion

In conclusion, the situation with iTonic Holdings presents a crucial chance for investors who feel they have suffered due to questionable corporate practices. Involvement in this class action could lead to meaningful recoveries for individuals affected by the alleged misconduct. Interested parties are encouraged to reach out to Levi & Korsinsky for more information on how to proceed.

For more details, investors can contact:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
32 Whitehall Street, 27th Floor
New York, NY 10004
Email: [email protected]
Phone: (212) 363-7500