Smart Digital Group Limited ($SDM) Alleged Market Manipulation / Pump-and-Dump Scheme Case

Investors can submit applications for the lead plaintiff role.

S.D. New York

Court

1:26-cv-00296

Case number

05/05/2025

Class period Start

09/26/2025

Class period End

03/16/2026

Lead Plaintiff motion deadline

$SDM investors filed a claim against Smart Digital Group Limited for allegedly misleading investors and failing to disclose key risks tied to unusual trading activity—claiming the stock was being used as a vehicle in a market-manipulation “pump-and-dump” promotional scheme driven by social media impersonators and misinformation.
After Nasdaq halted trading for volatility on September 26, 2025, and the stock then collapsed, $SDM fell about 86.4% from $13.61 on September 25, 2025 to $1.85 on September 26, 2025.
$SDG investors can join this case to be notified about potential recovery.
Case Details:

Between May 5, 2025 and September 26, 2025 (9:34 a.m. ET), Smart Digital Group Limited told investors its business was growing and positioned for continued success, including public statements that supported a positive outlook.

Investors allege that during this period, the company failed to disclose that $SDM was being tied to unusual trading activity and promotion consistent with a market-manipulation (“pump-and-dump”) scheme, creating a serious risk of trading halts or suspension.

On September 26, 2025, Nasdaq halted $SDM for volatility at 9:34 a.m. ET. After trading resumed, the stock crashed, closing at $1.85 (down from $13.61 the prior day). The SEC later announced a temporary trading suspension (Sept. 29–Oct. 10, 2025), and Nasdaq kept the stock suspended pending additional information.

Based on these events, $SDG investors filed a claim against Smart Digital Group, alleging the company:
It failed to disclose that $SDM was allegedly being used in a market-manipulation / pump-and-dump promotional scheme tied to social media impersonators
It omitted material risks that the stock faced an elevated likelihood of SEC/Nasdaq trading halts or a prolonged suspension
It misled investors about the true nature of trading activity and risk profile, inflating the stock price until the alleged truth emerged
Investors argue Smart Digital Group Limited misled the market about the integrity of trading in $SDM and the true risks associated with the stock, causing losses when the alleged manipulation concerns and trading suspensions came to light.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Failure to Disclose,

Price manipulation

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

09/26/2025

Filing date

01/13/2026

Lead Plaintiff Deadline

03/16/2026

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