Shareholder Alert: Robbins LLP Informs Shareholders of the iTonic Holdings Ltd. (ITOC)– Previously Known as Pheton Holdings Ltd. (PTHL)– Class Action Lawsuit
SAN DIEGO--(BUSINESS WIRE)--$ITOC #Health--Robbins LLP informs investors that a securities class action has been filed on behalf of all persons and entities that purchased or otherwise acquired Pheton Holdings Ltd (NASDAQ: PTHL) (n/k/a iTonic Holdings Ltd. (NASDAQ: ITOC)) securities between September 5, 2024 and July 29, 2025 (the "Class Period"). On January 13, 2026, the Company announced it was changing its name to iTonic Holdings Ltd. and changing its ticker symbol to ITOC effective January 16, 2026.
The lawsuit alleges that Pheton Holdings Ltd. was the subject of a market manipulation and fraudulent promotion scheme involving social-media misinformation and individuals impersonating financial professionals, and that the Company failed to adequately disclose risks associated with the alleged scheme.
Investors who suffered losses during the Class Period may have legal rights and should contact Robbins LLP aware of the September 28, 2026 deadline to seek appointment as lead plaintiff.
Why Was iTonic Sued?
According to the complaint, iTonic (f/k/a Pheton Holdings Ltd.) was subjected to a pump-and-dump and market manipulation scheme involving social-media-based misinformation and individuals allegedly impersonating financial professionals.
The lawsuit alleges the Company and certain defendants failed to adequately disclose material risks associated with the alleged market manipulation and fraudulent promotion activity.
According to plaintiff, defendants failed to disclose that:
(1) PTHL was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals;
(2) PTHL’s public statements and risk disclosures omitted any mention of intention to use fraudulent trading or the realized risk of market manipulation used to drive the Company’s stock price;
(3) as a result, the Company’s securities were at unique risk of extreme price volatility and trading halts triggered by the manipulation scheme;
(4) the Auditor Defendant and Underwriter Defendants had been involved with numerous foreign microcap public offerings that became targets of market manipulation schemes; 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.
Why Did the Company's Stock Collapse?
This complaint alleges that the collapse of the Company's stock followed an artificial price surge created through fraudulent stock promotions conducted immediately after the Company’s initial public offering (“IPO”). The Company's stock price increased from its IPO price of $4.00 to an all-time intraday high of $32.00 per share on July 28, 2025, despite the absence of any material corporate developments or legitimate business prospects to justify such an enormous spike.
Investigations and public reports have revealed the Company stock was utilized in a market manipulation and “pump-and-dump” promotional scheme, with impersonators claiming to be legitimate financial advisors touting the Company in online forums, chat groups, and social media posts with baseless claims to create a buying frenzy among retail investors. The promoters circulated fabricated rumors that Gilead Sciences, Inc. (NASDAQ: GILD) (“Gilead”) was preparing to acquire or partner with the Company with a transaction date of August 6, 2025.
According to the complaint, on July 29, 2025, at approximately 12:26 PM EDT, Pheton stock sank 11% and triggered a volatility halt. When trading resumed approximately 90 minutes later, the stock’s plunge reached 89% before trading was halted again. As the day continued, Pheton resumed trading and was halted at least eight more times, as it extended its decline to 95%. The Company's shares ended the day at $1.65, with a market capitalization of $40.8 million, down from $765 million the prior trading day.
Who May Be Eligible to Participate?
The lawsuit seeks to represent investors who purchased or otherwise acquired Pheton Holdings Ltd. (PTHL) securities during the applicable Class Period.
If you purchased Pheton stock during this period and suffered investment losses, you may have rights under the federal securities laws.
What Is a Lead Plaintiff?
The lead plaintiff is the investor appointed by the court to represent the interests of the proposed class throughout the litigation.
Investors do not have to serve as lead plaintiff to potentially share in any recovery if the lawsuit is successful.
If you want to seek appointment as lead plaintiff, you must submit your papers to the court by September 28, 2026.
Frequently Asked Questions
What is the class action about?
The lawsuit alleges that iTonic was the subject of a market manipulation and fraudulent promotion scheme and that the Company failed to adequately disclose material risks associated with that activity.
Why did the stock crash?
According to the complaint, the Company experienced a dramatic collapse on July 29, 2025, after the alleged market manipulation and fraudulent promotion risks became apparent. The stock fell approximately 95% in a single day.
Who can participate in the lawsuit?
Investors who purchased Pheton Holdings securities during the applicable Class Period may be eligible to participate in the proposed securities class action.
Do I have to become lead plaintiff?
No. Investors do not have to seek appointment as lead plaintiff to potentially share in any future recovery if the litigation is successful.
Does it cost anything to participate?
Robbins LLP represents investors on a contingency fee basis. Investors never pay attorneys' fees or litigation expenses. If there is a recovery, defendants pay fees and expenses.
Contact Robbins LLP
Investors seeking additional information about the iTonic Holdings securities class action may submit an inquiry through Robbins LLP's website, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
About Robbins LLP
A recognized leader in shareholder rights litigation, Robbins LLP has helped restore more than $1 billion in value to shareholders, secured some of the largest recoveries in shareholder derivative litigation history, and achieved governance reforms at over 400 Fortune 1000 companies.
"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," said Brian J. Robbins, Founding Partner of Robbins LLP.
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Contacts
Aaron Dumas, Jr.
Robbins LLP
5060 Shoreham Pl., Ste. 300
San Diego, CA 92122
adumas@robbinsllp.com
(800) 350-6003
www.robbinsllp.com
