Park Ha faces securities class action after BYAH shares plunged 93%

Park Ha faces a securities class action alleging it hid a pump-and-dump scheme before BYAH shares collapsed 93% on July 8.

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's securities," Joseph E. Levi, founding partner at Levi & Korsinsky, said.

BYAH fell $38.02 to settle at $2.99 on volume exceeding 8.9 million shares, erasing more than $1 billion in market capitalization. The stock had surged from its $4.00 IPO price to an all-time high of $41.49 on July 7, 2025, before the single-session collapse.

The lawsuit, filed in the Southern District of New York, asserts claims under Sections 11, 12 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act. Investors who purchased Park Ha securities between December 27, 2024 and July 8, 2025 have until September 28, 2026 to request lead plaintiff appointment.

The complaint alleges Park Ha's IPO prospectus warned generically that low-float stocks "may" experience extreme run-ups but never disclosed that BYAH shares were already the target of a coordinated promotional scheme. Impersonators using stolen identities of real financial advisors funneled retail investors into WhatsApp groups beginning June 18, 2025, citing a fabricated L'Oréal partnership and promising a 200% to 300% price increase. The scheme allegedly created a buying frenzy among retail investors who believed they were following legitimate financial professionals.

The company's public statements and risk disclosures omitted material information about false rumors and artificial trading activity driving the stock price, the complaint alleges. Park Ha's IPO was also intentionally structured with an extremely low public float, which facilitated the alleged manipulation. SEC filings acknowledged that recent IPOs with smaller public floats "may be subject to rapid and substantial price volatility," but plaintiffs argue the prospectus framed this as a hypothetical risk rather than disclosing that the scheme was already underway.

Multiple firms have announced actions. Bronstein, Gewirtz & Grossman set a September 21, 2026 lead plaintiff deadline, while Pomerantz LLP and Levi & Korsinsky both cite September 28, 2026. The case follows investigations revealing Park Ha's stock was promoted by impersonators in online forums, chat groups, and social media posts with baseless claims to create a buying frenzy among retail investors. The coordinated nature of the alleged scheme, including the use of stolen professional identities, has drawn attention to the risks of low-float IPO stocks more broadly.

The 93% collapse leaves BYAH trading below its $4.00 IPO price, and the legal proceedings could impose financial penalties and additional disclosure requirements. Investors will watch for the court's lead plaintiff appointment and any discovery filings that may reveal the scope of the alleged scheme.

This article is for informational purposes only and does not constitute investment advice.