Four law firms announced the filing of a class-action lawsuit against Fitness Champs Holdings Ltd. (NASDAQ: FCHL), alleging securities fraud after the company's stock price collapsed. The lawsuit stems from a precipitous 84.6% drop in the company's share price on September 23, 2025.
The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that FCHL and its executives engaged in a "pump-and-dump" market manipulation scheme. The lawsuit claims defendants made materially false and misleading statements, failing to disclose that the company was the subject of fraudulent promotion involving social media impersonators posing as financial professionals to inflate the stock value.
The Singapore-based sports education provider completed its initial public offering on September 4, 2025, raising $8 million by selling shares at $4.00 each. The stock traded as high as $7.20 per share on September 19, 2025, before plummeting to close at $1.07 just two trading days later on September 23.
Investors who purchased FCHL securities during the class period, from September 3, 2025, to September 23, 2025, have until June 16, 2026, to move the court to serve as lead plaintiff. The stock has continued to decline since the class period, now trading below $0.40 per share.
According to the lawsuit, the sharp increase in FCHL's stock price was not based on any fundamental news from the company. Instead, it was allegedly orchestrated through a promotional scheme designed to create a buying frenzy among retail investors. The complaint also points to the IPO's sole underwriter, Bancroft Capital LLC, noting it had underwritten numerous other microcap IPOs that experienced similar volatility-induced declines linked to market manipulation.
The defendants are accused of failing to disclose the risks of such a scheme, which left the securities vulnerable to a trading suspension and severe price collapse. Law firms including Wolf Haldenstein Adler Freeman & Herz LLP, The Portnoy Law Firm, Pomerantz LLP, and The Schall Law Firm are representing investors.
The legal action highlights the significant losses incurred by investors and seeks to hold the company and its executives accountable. The deadline of June 16, 2026, is the next key date for investors seeking to recover damages.
This article is for informational purposes only and does not constitute investment advice.
