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2w ago

Smart Digital Sued in SDNY Securities Class Action as Trading Halt Persists

Investors face a March 16 deadline to seek lead‑plaintiff status, with SDM trading still halted after regulator suspensions over suspected social‑media manipulation.

Overview

  • The complaint, Dixit v. Smart Digital Group Limited (Case 1:26-cv-00296), was filed in the Southern District of New York for investors who bought SDM shares between May 5, 2025 and September 26, 2025 at 9:34 a.m. ET.
  • Plaintiffs allege a social‑media promotion scheme involving misinformation and impersonators, along with insider or affiliate selling through offshore or nominee accounts.
  • SDM shares fell 86.4% on September 26, 2025, closing at $1.85 after an intraday NASDAQ volatility halt early in the session.
  • The SEC suspended trading from September 29 to October 10, 2025 over potential manipulation tied to social‑media recommendations, and NASDAQ suspended trading on October 11 pending more information, with shares still halted.
  • Multiple investor firms, including Wolf Haldenstein, Faruqi & Faruqi, Holzer & Holzer, Robbins LLP, and Bragar Eagel & Squire, are soliciting class members, and the allegations remain unproven.