Megan Holdings Limited Class Action Lawsuit - MGN

Company: Megan Holdings Limited

Ticker: (NASDAQ) MGN

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Lead Plaintiff Deadline: September 08, 2026

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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:

1. I have reviewed a complaint filed in the action.

2. 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.

3. I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.

4. My transaction(s) in Megan 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.

5. Within the last 3 years,



6. 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.

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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 Megan 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.

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Class Definition

This lawsuit is on behalf of persons and entities that purchased or otherwise acquired Megan: (a) securities pursuant and/or traceable to the registration statement and related prospectus in connection with Megan’s initial public offering, which occurred on or around September 26, 2025; and/or (b) securities between September 26, 2025, and March 25, 2026, inclusive.

Allegations

The filed complaint alleges that Megan Holdings Limited made materially false and/or misleading statements and/or failed to disclose that:

(1) Megan was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals; (2) Megan’s public statements and risk disclosures omitted any mention of the realized risk of fraudulent trading or market manipulation used to drive the Company’s stock price; (3) as a result, Megan securities were at unique risk of a sustained suspension in trading by NASDAQ and severe volatility-induced decline; (4) the sole underwriter on the IPO, DBC, had conducted numerous microcap IPOs that suffered volatility-induced declines resulting from market manipulation schemes; (5) the Company suffered from material weaknesses in its internal accounting and financial reporting controls; and (6) 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.

Eligibility

In order to be eligible to join the MGN class action lawsuit, you must have incurred a loss on shares of Megan purchased during the class period listed above.

Lead Plaintiff Deadline

If you suffered a loss in Megan during the relevant time frame or pursuant to the relevant offering(s), you have until September 08, 2026 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.

Megan Holdings LimitedClass Action Lawsuit Details

Key Facts About Megan Holdings Limited (NASDAQ: MGN)

●     The Allegation: The complaint alleges that Megan Holdings Limited was used as a vehicle in a market manipulation and “pump-and-dump” promotional scheme, in which impersonators posing as financial advisors touted MGN shares in online forums, chat groups, and messaging applications like WhatsApp, while defendants publicly presented Megan as a legitimate Malaysian aquaculture services company and allegedly failed to disclose the realized risk of fraudulent trading.

●     The Stock Drop: On March 26, 2026, MGN collapsed 93.4% to close at $0.28 per share, down from $4.24 per share at the March 25, 2026 close and $5.18 per share at the intraday high. According to the complaint, a coordinated after-hours dump caused shares to open near $0.42 and triggered repeated NASDAQ trading halts.

●     Class Period & Defendants: The class period runs from September 26, 2025 through March 25, 2026, inclusive. The named defendants are Megan Holdings Limited, Darren Hoo (also known as Hoo Wei Sern, Chief Executive Officer and Executive Director), Ng Kai Tie (Chief Financial Officer), the Company’s IPO underwriter D. Boral Capital LLC, and its former auditor WWC, P.C.

●     Lead Plaintiff Deadline: The lead plaintiff application deadline is September 8, 2026. No action is required before the deadline to remain a potential class member. Action is only needed if you wish to seek appointment as lead plaintiff.

Megan Class Action Summary

Company

Megan Holdings Limited (NASDAQ: MGN)

Lead Plaintiff Deadline

September 8, 2026

Class Period

September 26, 2025 – March 25, 2026

Stock Drop

March 26, 2026 – MGN fell to $0.28 (93.4%) from $4.24

Introduction

A securities class action lawsuit has been filed against Megan Holdings Limited (NASDAQ: MGN). Plaintiff Wade Mundy brought the case in the U.S. District Court for the Southern District of New York. It covers investors who bought Megan securities from September 26, 2025 through March 25, 2026.

The lawsuit also covers investors who bought shares tied to Megan’s initial public offering. That IPO occurred on or around September 26, 2025, at $4.00 per share. The complaint alleges defendants made materially false and misleading statements and hid that Megan was the target of a market manipulation and “pump-and-dump” scheme. It claims promoters posing as financial advisors touted the stock online to create a buying frenzy.

The complaint alleges the true nature of the trading activity was never disclosed. The complaint alleges that investors who purchased during the class period suffered heavy losses.

Company Profile

Megan Holdings Limited is a Cayman Islands holding company with principal operations based in Malaysia. According to its offering documents, the Company is principally engaged in the development, construction, and maintenance of aquaculture farms and related works, focused largely on shrimp farm services in Tawau, Sabah, Malaysia, and it also assists customers with the design and development of new farms. At the time of its IPO, Megan operated through two subsidiaries, Megan Mezanin Sdn Bhd and Megan Technologies Sdn Bhd, and described plans to develop a proprietary Smart Farming System.

Class Period

September 26, 2025–March 25, 2026

Investors who purchased or acquired Megan Holdings Limited (MGN) securities during the Class Period may be eligible to seek recovery under the federal securities laws. The lawsuit also asserts claims on behalf of investors who purchased Megan securities pursuant or traceable to the Offering Documents in connection with the Company’s IPO, which occurred on or around September 26, 2025.

MGN-Infographic-Image-scaled.png

Allegations

The complaint centers on Megan’s September 2025 IPO, in which the Company sold 1.25 million ordinary shares at $4.00 per share, raising $5 million in gross proceeds. D. Boral Capital LLC served as the sole bookrunning manager and underwriter, while WWC, P.C. served as the Company’s auditor and issued a clean audit opinion on the financial statements incorporated into the Registration Statement. Chief Executive Officer Darren Hoo and Chief Financial Officer Ng Kai Tie signed the Registration Statement. The complaint alleges the Offering Documents contained materially false and misleading statements and omitted facts required to be disclosed.

The offering documents described Megan as a trusted and experienced aquaculture services provider with diverse revenue streams and growth plans, including the development of a Smart Farming System. According to the complaint, these representations presented an unrealistically positive assessment of the Company while omitting the true risks facing its securities. The complaint characterizes the Prospectus’s small-float volatility disclosures as vague and boilerplate and alleges they failed to disclose Megan’s particular vulnerability to manipulation.

The lawsuit alleges defendants failed to disclose that Megan was the subject of a market manipulation and fraudulent promotion scheme involving social-media-based misinformation and impersonators posing as financial professionals. Plaintiffs claim the Company’s public statements omitted any mention of the realized risk of fraudulent trading, that Megan securities faced a unique risk of a sustained NASDAQ trading suspension and severe volatility-induced decline, and that D. Boral Capital had underwritten numerous microcap IPOs that suffered volatility-driven collapses tied to manipulation schemes. The complaint also alleges the Company suffered from material weaknesses in its internal accounting and financial reporting controls that were not disclosed.

According to the complaint, the Company’s structure made it especially vulnerable. By offering just 1.25 million shares to the public, Megan had a scarce public float that allowed even modest buying pressure to create explosive price movements, a vulnerability plaintiffs allege defendants failed to disclose. The lawsuit contends the auditor knew or should have known of the undisclosed adverse facts and lacked a reasonable basis for its audit opinion, and that the underwriter had the opportunity to review and correct the offering materials but did not.

The Truth Emerges

The complaint alleges that while Megan’s stock price and trading volume surged with little corresponding news, a coordinated effort on social media and messaging applications such as WhatsApp “pumped” the stock, led by promoters posing as financial advisors who used aliases and false photographs to conceal their identities. According to the complaint, one WhatsApp group described Megan as an “Insider Rocket Stock” and urged investors to place a “Strict Limit Buy” at $4.73 per share with a target price of about $9 or more. The complaint alleges this campaign began in October 2025 at the latest and created an artificial base of buyers, allowing conspirators to unload shares at inflated levels while investors bore the losses.

The reckoning arrived at the end of the class period. On March 25, 2026, MGN opened at $4.82, reached an intraday high of $5.18, then closed sharply lower at $4.24 per share on trading volume of more than 29 million shares, with no news to explain the movement. The complaint notes this date was the first trading day after the expiration of the 180-day IPO lock-up period. According to the complaint, following a coordinated after-hours dump, shares opened on March 26, 2026 near $0.42, roughly 90% below the prior close, and NASDAQ halted trading multiple times throughout the day.

Subsequent filings, the complaint alleges, disclosed additional internal-control and listing-compliance issues. In its Annual Report on Form 20-F filed May 15, 2026, Megan disclosed that its disclosure controls and procedures were ineffective as of December 31, 2025, citing material weaknesses tied to a lack of sufficient accounting personnel and comprehensive U.S. GAAP policies. The Company also filed a Notification of Late Filing on April 30, 2026, and disclosed on May 13, 2026 that it had received a NASDAQ notice for failing to meet the minimum bid price requirement.

Market Reaction

The collapse of Megan’s stock was severe and swift. On March 26, 2026, MGN fell 93.4% to close at $0.28 per share, down from a $4.24 close (and a $5.18 intraday high) the prior day, on trading volume of more than 39 million shares. The steep decline followed a run-up the complaint alleges was fueled by manipulation, in which, according to the complaint, the stock had spiked more than 400% from $1.23 on February 25, 2026 to trade as high as $5.18 intraday on March 25, 2026, despite no fundamental news to justify the increase.

The closing price of $0.28 per share stood approximately 93% below the $4.00 IPO offering price. Trading in Megan shares was halted repeatedly by NASDAQ during the March 26 session, underscoring the volatility investors experienced as the alleged scheme unwound.

Next Steps

●     Lead Plaintiff Deadline: September 8, 2026

●        After the lead plaintiff deadline, the Court will consider any lead plaintiff motions.

●        Defendants may file a motion to dismiss.

●        If the case proceeds, the Court may later consider class certification.

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.