A class action lawsuit has been filed against Charming Medical Limited (NASDAQ: MCTA) following a Securities and Exchange Commission investigation into allegations that financial advisors engaged in coordinated social media promotion to artificially inflate the company's stock price. The SEC subsequently suspended trading in the company's shares pending the outcome of its inquiry.
The litigation, initiated by the DJS Law Group, covers transactions during a period spanning from October 21, 2025 through November 12, 2025. The case addresses investor claims related to securities law violations stemming from the alleged promotional activities.
Shareholders who transacted in MCTA securities during the relevant period have until February 17, 2026 to request inclusion in the class action. The case represents a continuing regulatory focus on market manipulation through digital platforms and unauthorized promotional activities in equity securities.