#USA #New York #Securities Class Action #Faruqi & Faruqi #Smart Digital

Investigation into Smart Digital Investors' Claims

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced that it is currently investigating claims on behalf of investors who have suffered losses related to Smart Digital Group Limited, abbreviated as SDM. The investigation centers around allegations that the company and its executives may have violated federal securities laws by disseminating false and misleading statements and by failing to disclose crucial information about their operations.

The claims apply to those who purchased or acquired securities of Smart Digital between May 5, 2025, and September 26, 2025. Investors are being urged to contact James (Josh) Wilson, a partner at Faruqi & Faruqi, to discuss their options moving forward. The deadline for investors to apply for the role of lead plaintiff in a federal securities class action against Smart Digital is March 16, 2026.

Allegations Against Smart Digital

According to the allegations detailed in the complaint, it has been suggested that Smart Digital was involved in a market manipulation scheme, where social media misinformation and impersonator accounts posed significant risks to the company and its share price. The suit accuses insiders and affiliates of having used offshore accounts to coordinate the sale of shares during a price inflation campaign. Furthermore, critical disclosures regarding the company's financial risks related to fraudulent trading have been notably absent from their public statements and risk assessments.

The gravity of the situation came to light when, on September 26, 2025, Smart Digital’s stock price plummeted by 86.4%, closing at just $1.85 per share. This downturn occurred shortly after the Nasdaq imposed an intraday halt on trading due to volatility. Just days later, the SEC took action to suspend trading in Smart Digital's securities, citing potential manipulation resulting from improper recommendations made via social media. The Commission cautioned investors that they should examine the potential risks rigorously before making any financial decisions regarding Smart Digital shares.

Current Status

While trading in Smart Digital’s securities remains halted, the SEC has not set a date for when it might resume. This uncertain situation adds additional stress for investors and further complicates the landscape for those wishing to take collective legal action. The lead plaintiff selected will play a crucial role in directing the litigation on behalf of the affected investors.

Faruqi & Faruqi emphasizes that any member of the putative class can seek to serve as the lead plaintiff through legal counsel or choose to be an absent member of the class, impacting their ability to recover any potential losses from the litigation. They also invite any whistleblowers, former employees, or shareholders with relevant information about Smart Digital’s practices to come forward and contact their office.

For those interested in staying informed, updates about the Smart Digital investigation are being shared through Faruqi & Faruqi’s website, alongside avenues for investors to seek justice for their losses. Those ready to explore their legal rights regarding their investments in Smart Digital may reach out to partner Josh Wilson at 877-247-4292 or through direct office lines.

The law firm’s history of recovering substantial funds for investors since its inception in 1995 provides a glimmer of hope to those who have suffered financial losses in this unfolding situation. It remains to be seen how the investigation will influence the future of Smart Digital and its investors, but the legal action initiated by Faruqi & Faruqi underscores the serious implications of corporate governance and market integrity in today’s financial landscape.