Ostin Technology Group ($OST) Alleged Pump-and-Dump Scheme Case

Investors can submit applications for the lead plaintiff role.

S.D. New York

Court

1:26-cv-01288

Case number

05/11/2025

Class period Start

06/26/2025

Class period End

04/17/2026

Lead Plaintiff motion deadline

$OST investors filed a claim against Ostin Technology Group for allegedly setting up a pump-and-dump scheme by placing large blocks of shares with co-conspirators and fueling an artificial run-up in trading.
After a coordinated selloff wiped out over $950 million in market value, $OST fell 94.1% on June 26, 2025, closing at $0.55 per share.
$OST investors can join this case to be notified about potential recovery.
Case Details:

Between May 11, 2025 and June 26, 2025, Ostin Technology Group told investors its securities offering would support the company’s growth and operations. After the June 26, 2025 price collapse, the company also stated it had “no undisclosed material matters” and was not aware of the specific reasons for the abnormal trading.

Investors allege $OST’s sharp rise was not the result of normal trading. They claim it was fueled by a coordinated stock-manipulation effort connected to heavily dilutive transactions, including an April 2025 registered direct offering and a May 2025 warrant exchange.

They further allege the company did not disclose that these transactions were used to move roughly 80 million shares, about 75% of the outstanding shares to a small group of “select investors” at extremely low cost, and that a promotional campaign, allegedly involving impersonation, WhatsApp groups, and AI deepfake content was used to create artificial buying interest while co-conspirators set up brokerage accounts to sell those shares into the market.

Then, on June 26, 2025, a coordinated dump allegedly triggered the scheme’s collapse. $OST fell 94.1%, closing at $0.55. Additional revelations followed on September 12, 2025, including the unsealing of a DOJ indictment charging the co-CEO and a financial advisor, and Nasdaq’s halt of $OST trading. By August 2025, shares had dropped to $0.08, representing a total decline of 99.1% over the correction period.

Based on these events, $OST investors filed a claim against Ostin Technology Group, alleging the company:
It helped run a pump-and-dump scheme in OST shares.
It issued shares and executed a warrant exchange that allegedly let select investors obtain and sell huge amounts of stock at little to no cost.
It left investors unaware of the manipulation until the market reacted, shares collapsed, and trading was later halted.
Investors argue Ostin Technology Group misled the market about whether the stock’s surge reflected real demand versus an alleged coordinated scheme, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Price manipulation

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/26/2025

Filing date

02/16/2026

Lead Plaintiff Deadline

04/17/2026

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