ChowChow Cloud International Holdings Limited Class Action Lawsuit – CHOW

Introduction to ChowChow Cloud International Holdings Limited (CHOW) Securities Class Action Lawsuit

A securities fraud class action has been filed against ChowChow Cloud International Holdings Limited (NYSE American: CHOW), whose ordinary shares trade on the NYSE American under ticker symbol CHOW and several individual officers, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 during the period from September 16, 2025, through December 10, 2025, beginning with its Initial Public Offering (IPO).

Investors allege the company made materially false and misleading statements about its business operations and prospects while failing to disclose that its stock was the subject of a pump-and-dump market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals. The alleged scheme culminated on December 10, 2025, when the stock price collapsed 84.3% in a single trading session following two trading halts by NYSE American. Investors who purchased CHOW securities during this period allegedly suffered substantial losses when the manipulation was revealed.

“Most CHOW shareholders never file or join the class action, which means they miss out on potential recovery funds,” said Attorney Joseph Levi.

ChowChow Cloud International Holdings Limited (CHOW) Securities Lawsuit Case Details

Case Name: Hansink v. ChowChow Cloud International Holdings Limited et al.

Case No.: 1:26-cv-2063

Jurisdiction: U.S. District Court, Southern District of New York

Filed on: March 13, 2026

ChowChow Cloud International Holdings Limited (CHOW) Company Profile

ChowChow Cloud International Holdings Limited is a Cayman Islands holding company with operations in Hong Kong, operating through Sereno Cloud Solutions HK Limited and serving the Asia-Pacific market, including Hong Kong and Singapore that purports to provide one-stop cloud solutions supporting companies across the IT industry value chain, including digital transformation consulting, professional IT services, AI-powered cloud managed services, and IT infrastructure solutions, and is a controlled company, with Rainbow Sun Enterprises Limited holding approximately 69.68% of voting power post-IPO.

ChowChow Cloud International Holdings Limited (CHOW) Securities Lawsuit Class Period

September 16, 2025 – December 10, 2025, inclusive.

Investors who purchased or otherwise acquired CHOW securities during the Class Period, including ordinary shares traded on the NYSE American under ticker symbol CHOW, may be eligible to join the ChowChow Cloud International Holdings Limited (CHOW) class action lawsuit.

Allegations in the ChowChow Cloud International Holdings Limited (CHOW) Securities Class Action Lawsuit

The complaint targets ChowChow Cloud International Holdings Limited, its Chief Executive Officer and Chairman Yee Kar Wing, Chief Operating Officer Hui Wai Ming, Chief Financial Officer Wong Chung Wai, underwriter US Tiger Securities, Inc., and auditor Assentsure PAC, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The company completed its initial public offering (IPO) on September 16, 2025, raising $10.4 million in gross proceeds from 2.6 million ordinary shares priced at $4.00 per share. In its prospectus issued that same day, the company portrayed itself as a pioneer in cloud solutions and highlighted substantial growth, stating that revenue had increased 28.6% from HK$141.4 million in 2023 to HK$181.8 million in 2024.

On May 28, 2025, Assentsure PAC, a Singapore-based, PCAOB-registered auditor had issued an opinion stating that the company's consolidated financial statements presented fairly, in all material respects, the financial positions and results of operations in conformity with generally accepted accounting principles. According to the complaint, these positive statements allegedly omitted critical facts about the true nature of trading activity in CHOW securities, including that CHOW stock traded at artificially inflated prices during the class period. Investors allege the company failed to disclose that its stock was subject to a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals. The complaint alleges that CHOW's public statements and risk disclosures omitted any mention of the realized risk of fraudulent trading or market manipulation being used to drive the stock price, leaving securities at unique risk of sustained trading suspension on NYSE American and severe volatility-induced decline.

The complaint further alleges that the sole underwriter on the IPO, Tiger Securities, had been fined and censured by FINRA (the Financial Industry Regulatory Authority) in April 2025 for failing to have a reasonable system in place to identify potentially suspicious deposits of low-priced securities. As a result of these alleged omissions, investors claim that defendants' positive statements about the company's business, operations, and prospects were materially misleading and lacked a reasonable basis, violating Sections 10(b) and 20(a) of the Exchange Act.

The Truth Emerges

The alleged scheme was revealed on December 10, 2025, through catastrophic market action rather than company disclosure. Trading in CHOW ordinary shares was halted twice by NYSE American that day as the stock price collapsed from a closing price of $11.70 per share on December 9, 2025, down to $1.83 per share at closing on December 10, 2025, a single-day decline of 84.3%.

At approximately 11:05 AM EST, a surge of sell orders and volume of about 360,000 shares caused the price to plummet from $11.95 per share to $10.59 per share in mere minutes, triggering the first trading halt, which remained in effect from 11:07 AM to 12:37 PM EST. NYSE American halted trading a second time from 3:44 PM EST until 3:49 PM EST before the stock ultimately closed at $1.83 per share. The following day, December 11, 2025, the company issued a press release acknowledging unusual trading activity in its ordinary shares on December 10 and 11, 2025. Management stated the company had made inquiries and was unable to determine whether corrective actions were appropriate, and that there had been no material development in its business and affairs not previously disclosed or any other reason to account for the unusual market action.

Market Reaction

The stock exhibited extreme volatility throughout the class period on the NYSE American exchange. On its first trading day following the IPO on September 16, 2025, CHOW ordinary shares opened at $8.00 per share-double the IPO price of US$4.00 per share-and surged to an intraday high of $21.91 per share before closing at $12.61 per share on volume of 1.4 million shares, a one-day gain of 215.25%. The price then declined over the next three trading sessions, falling 32.6% to $8.50 per share on September 17, another 36.7% to $5.38 per share on September 18, and an additional 6.9% to $5.01 per share on September 19, 2025, representing a cumulative three-day decline of 60.3% from the first-day closing high.

In early December 2025, the stock price surged again on record-breaking trading volume, rising 18.1% to $11.20 per share on December 8 on volume of over nine million shares, then climbing another 4.5% to $11.70 per share on December 9 on volume of over 6.5 million shares, despite the absence of any news relating to or filing by the company. On December 10, 2025, the alleged pump-and-dump scheme collapsed with the 84.3% single-day price decline to $1.83 per share on volume of just under 13.5 million shares, causing catastrophic losses to investors.

Next Steps

● The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

● The Court will then consider motion for class certification.

● The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

I have reviewed a complaint filed in the action.
I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.
I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.
My transaction(s) in ChowChow Cloud International Holdings Limited which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.
Within the last 3 years,
I have not sought to serve nor have I served as a class representative in any federal securities fraud case. I have sought to serve as a class representative in
I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

Are you US Citizen?

Yes. I certify under penalty of perjury that the foregoing is true and correct. Executed this No. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

Clear

Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against ChowChow Cloud International Holdings Limited. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

I have reviewed the complaint linked in paragraph 1