Pomerantz LLP has initiated a class action lawsuit against China Liberal Education Holdings Limited (CLEU), alleging that the company's stock price was artificially inflated through a coordinated social media fraud scheme. According to the complaint, individuals impersonating investment advisors conducted fraudulent campaigns on social media platforms in January 2025, misleading investors into purchasing CLEU shares under false pretenses.
The alleged scheme resulted in significant investor losses when CLEU's stock price collapsed on January 30, 2025, wiping out nearly the entire value of shareholders' investments. The lawsuit contends that investors were systematically deceived by bad-faith actors posing as legitimate financial advisors, raising questions about the adequacy of market safeguards against social media-based securities fraud.
Investors who purchased CLEU stock during the relevant period and sustained losses have until March 31, 2026, to petition the court to serve as Lead Plaintiff in the class action. Affected shareholders are advised to consult with legal counsel regarding their eligibility and potential remedies available through the litigation process.