A securities class action has been filed against ChowChow Cloud International Holdings Limited (CHOW) on behalf of persons and entities that purchased or otherwise acquired CHOW securities between September 16, 2025 through December 10, 2025. This case has been filed in the USDC – SDNY.
The case arises from the sudden collapse of CHOW’s stock price on December 10, 2025, including multiple halts of trading by the New York Stock Exchange American Exchange in the Company’s securities due to volatility from market manipulation that caused the Company’s stock price to surge following the IPO despite no fundamental change in profile, news or information from the Company. On that date, trading in the Company’s stock was halted twice and its price suffered a collapse of 84.3% from a closing price of $11.70 per share on December 9, 2025, down to $1.83 per share at closing on December 10, 2025. Investigation and public reports have revealed that CHOW was a vehicle utilized in a market manipulation and “pump-and-dump” promotional scheme. As part of the scheme, impersonators acting as financial advisors touted CHOW in online forums, chat groups, and social media posts with baseless claims to create a buying frenzy amongst retail investors.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and the true nature of the trading activity in the securities. Specifically, Defendants failed to disclose to investors that: (1) CHOW was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals; (2) CHOW’s public statements and risk disclosures omitted any mention of the realized risk of fraudulent trading or market manipulation used to drive the Company’s stock price; (3) that, as a result, CHOW securities were at unique risk of a sustained suspension in trading by NYSE American and severe volatility-induced decline; (4) that the sole underwriter on the IPO, Tiger Securities, had been fined and censured by the Financial Industry Regulatory Authority (“FINRA”) in April 2025 for failing to have a reasonable system in place to identify potentially suspicious deposits of low-priced securities; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.