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Hagens Berman Investigates ALT5 Sigma Corporation

Hagens Berman, a respected shareholder rights law firm, has initiated a formal investigation into ALT5 Sigma Corporation, whose stock has plummeted nearly 80% following a series of alarming management changes and regulatory disclosures. The inquiry aims to determine if the company misled its investors regarding its financial integrity and internal controls, particularly in relation to a $1.5 billion capital raise that occurred in mid-August 2025.

Context of the Investigation

In the wake of the October 2025 disclosure that ALT5's financial reporting may not conform to generally accepted accounting principles (GAAP), the firm is rigorously scrutinizing the circumstances surrounding these allegations. Not long after the significant capital infusion, ALT5 revealed troubling news about its operations that included allegations of money laundering against one of its subsidiaries, as well as a recent overhaul in its leadership team.

In late August 2025, just weeks after securing $1.5 billion in financing, the Intermediate Court of Nyarugenge, Rwanda, ruled that ALT5 Sigma Canada Inc., a subsidiary of ALT5, was found liable for various financial improprieties, including illicit enrichment. This judgment prompted a deeper inspection into the company’s financial statements, leading to serious concerns about potential omissions or misstatements. The investigation further expanded following the suspension of CEO Peter Tassiopoulos and the subsequent appointment of CFO Jonathan Hugh, who also faced dismissal shortly thereafter.

These rapid-fire developments caught investor attention; on November 28, the company publicly acknowledged the resignation of its outside auditor, coinciding with the firing of CFO Hugh. This series of events raised flags for Hagens Berman, indicating that the financial and operational instability within ALT5 may have been exacerbated by a lack of proper internal controls and transparency.

Key Events Triggering the Investigation

• - August 2025: ALT5 proceeds with a $1.5 billion capital raise.
• - Late August 2025: Company announces legal issues regarding illicit enrichment and money laundering against its subsidiary.
• - October 2025: CEO and CFO get suspended, leading to further instability as the company struggles to meet reporting obligations.
• - November 2025: Quick succession of leadership changes and auditor resignation heightens scrutiny.

This situation poses an alarming risk not only to investors but also highlights severe governance failings within ALT5. Hagens Berman’s partner, Reed Kathrein, has emphasized the urgency for investors who have suffered losses to come forward. The urgency stems from potential claims related to financial reporting breaches and to understand the full implications of the current situation.

Next Steps for Investors

In light of these troubling developments, Hagens Berman is actively encouraging affected investors in ALT5 to come forward and seek representation. The firm is dedicated to providing legal insights into how those impacted can seek accountability and remedy for any financial damages incurred.

Whistleblowers with insider information regarding ALT5’s financial practices are also being urged to contact the firm, as the SEC’s Whistleblower program offers potential rewards for original information leading to successful recoveries.

The implications of this investigation could have far-reaching effects on ALT5 and its stakeholders, particularly regarding the integrity of its financial statements and the robustness of its internal control frameworks.

For more information on how to navigate this situation or to report potential losses, investors can get in touch with Reed Kathrein at Hagens Berman by calling 844-916-0895 or visiting the firm’s official website for further guidance on the ongoing investigation.