Key Takeaways:
A class action lawsuit has been filed against ChowChow Cloud International Holdings Ltd. (NYSE: CHOW) after a stock plunge of over 84% wiped out significant shareholder value, prompting multiple law firms to seek damages for investors.
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC, one of the firms that has filed a suit.
The complaint alleges that ChowChow was the subject of a market manipulation scheme involving social media misinformation, which artificially inflated its stock price. On December 10, 2025, the stock crashed from an intraday high of $11.95 to a closing price of $1.83, an 84.3% decline. The lawsuit also highlights that the company’s sole IPO underwriter, Tiger Securities, had been fined by FINRA in April 2025 for failing to maintain systems to detect suspicious activity.
The legal action seeks to recover damages for investors who purchased securities during the class period of September 16, 2025, to December 10, 2025. The deadline for investors to petition the court to be appointed as lead plaintiff is May 12, 2026. Shares of ChowChow have continued to decline, trading at $0.43 on May 1, 2026.
The lawsuits, filed by firms including Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, and Pomerantz LLP, claim that ChowChow failed to disclose the fraudulent promotion and the associated risks. The company’s public statements allegedly lacked a reasonable basis, omitting the realized risk of market manipulation that led to a prolonged trading halt by the NYSE American and the subsequent price collapse.
The sharp decline on December 10 was triggered by a sudden surge in sell orders, leading to two separate trading halts due to extreme volatility. The stock, which had been driven up by what the complaints describe as a "pump-and-dump" scheme, saw its value evaporate in hours.
The legal proceedings will now focus on the court appointing a lead plaintiff to represent the class of affected shareholders. The outcome of the lawsuit could have significant financial implications for ChowChow Cloud International. Investors will be watching the May 12 deadline as the next key date in the case.
This article is for informational purposes only and does not constitute investment advice.
