Robbins LLP is Investigating Allegations that Pheton Holdings Ltd. - Now iTonic Holdings Ltd. - Was the Subject of a Market Manipulation and Fraudulent Promotion Scheme 

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.

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. Submit a form for Information.

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