SDNY Class Action Targets Smart Digital Over Alleged Social-Media Manipulation After 86% Plunge

Overview

• The case, Dixit v. Smart Digital Group Limited (No. 1:26-cv-00296), was filed in the U.S. District Court for the Southern District of New York.
• The complaint alleges Smart Digital and its executives made false or misleading statements and concealed a coordinated promotion scheme driven by social-media misinformation.
• The proposed class period covers purchases from May 5, 2025 through September 26, 2025 at 9:34 a.m. EST.
• After a volatility halt on September 26, 2025, SDM fell 86.4% to close at $1.85, the SEC then suspended trading from September 29 to October 10 citing potential manipulation, and Nasdaq later imposed a continuing halt.
• Law firms including Wolf Haldenstein, Faruqi & Faruqi, Holzer & Holzer, and Robbins LLP are notifying affected investors and inviting contacts regarding potential claims.