Faruqi & Faruqi Initiate Investigation into Smart Digital Securities Claims

Investigation of Smart Digital Group Limited by Faruqi & Faruqi

Faruqi & Faruqi, LLP, a renowned national securities law firm, has announced an investigation concerning potential claims on behalf of investors in Smart Digital Group Limited (NASDAQ: SDM). This inquiry is particularly crucial for individuals who purchased the company's securities between May 5, 2025, and September 26, 2025. The firm emphasizes the March 16, 2026, deadline for investors wishing to assume the role of lead plaintiff in a federal securities class action against Smart Digital.

Faruqi & Faruqi's investigation arises following alarming disclosures regarding Smart Digital, which revealed that the company may have been caught in a web of market manipulation and fraudulent promotional practices. Allegations suggest that misleading statements were circulated, notably those pertaining to false narratives and impersonators posing as financial professionals on social media. Investors are encouraged to contact the firm's Securities Litigation Partner, James (Josh) Wilson, for advice and insights regarding their legal rights.

Background of Smart Digital Securities

Smart Digital's shares drastically plummeted by over 86% on September 26, 2025, dropping to a mere $1.85 after the NASDAQ halted trading shortly after the market opened due to volatility. This dramatic fall came just before the SEC intervened, suspending trading in Smart Digital’s securities from September 29, 2025, until early October, due to the ongoing suspicions of fraudulent trading activities.

The firm's preliminary investigations suggest that Smart Digital executives may have engaged in illegal conduct that inflated the stock price, thus misleading investors regarding the company's true value and operational health. Reports indicate insiders might have utilized offshore accounts to facilitate a coordinated sell-off during periods of price inflation, suggesting deep-rooted issues within the company's governance and disclosure practices.

Legal Framework and Investor Actions

In the rapidly evolving world of securities law, investors who feel they’ve been wronged have options. The lead plaintiff in such a class action must hold substantial financial interest and be typical of other members in the class. Members of the putative class have the choice to either actively pursue a leadership role or to remain passive, yet the potential for recovery remains unaffected by such decisions.

Investors are urged to share any relevant information regarding Smart Digital's conduct with Faruqi & Faruqi. This call extends not only to shareholders but also to whistleblowers and former employees with insight into the company's transactions or conduct, as their testimonies could significantly bolster the case.

Next Steps for Investors

Those who may have incurred losses through Smart Digital's securities trading or who have pertinent information can visit www.faruqilaw.com/SDM for further details or contact partner Josh Wilson directly at 877-247-4292.

Faruqi & Faruqi, LLP has a long-standing record of recovering significant amounts for investors since its establishment in 1995. The firm operates across various states, including New York, Pennsylvania, California, and Georgia, ensuring access to experienced legal representation for affected investors. As always, all discussions will be held in confidence, reinforcing the firm’s dedication to protecting client interests.

Stay updated about Smart Digital and the ongoing investigation through social media platforms like LinkedIn and Twitter. Attorney advertising considerations indicate that previous successes do not guarantee similar outcomes in future matters.

In conclusion, if you have been impacted by Smart Digital's alleged malpractices, now is the time to act. The steps taken today may lead to a recovery tomorrow.