A class action lawsuit has been initiated against Ostin Technology Group Co., Ltd. (NASDAQ: OST) alleging a coordinated securities fraud scheme involving company co-CEO Lai Kui Sen and financial advisor Yan Zhao. According to the complaint, the defendants orchestrated fraudulent securities offerings while simultaneously conducting a coordinated social media campaign designed to artificially elevate the company's stock price.
The alleged scheme resulted in significant market manipulation, with the stock price surging from $0.78 to $9.40 between April and June 2025—a period during which the perpetrators reportedly accumulated over $110 million in illicit proceeds. The manipulation came to an abrupt halt on June 26, 2025, when Ostin Technology's stock experienced a severe market correction, losing more than 94 percent of its value in a single trading session.
The lawsuit, announced by Bragar Eagel & Squire, P.C., seeks to recover damages on behalf of affected shareholders. The firm is encouraging investors who purchased Ostin Technology securities during the relevant period to contact the firm regarding potential participation in the class action.