Robbins LLP is Investigating Allegations that Ostin Technology Group Co., Ltd. (OST) Engaged in a Pump-and-Dump Scheme that Defrauded Investors

Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Ostin Technology Group Co., Ltd. (NASDAQ: OST) ordinary shares between May 11, 2025 and June 26, 2025. OST purports to be a manufacturer of thin-film transistor liquid crystal display ("TFT-LCD") modules and polarizers used in consumer electronics, commercial LCD displays, and automotive displays.

The Allegations

According to the complaint, on September 12, 2025, the U.S. Department of Justice unsealed a criminal indictment in the Eastern District of Virginia charging defendants Lai Kui Sen, OST's co-Chief Executive Officer, and Yan Zhao, a financial advisor, with conspiracy to commit securities fraud under Title 18, and wire fraud and securities fraud under Title 15. The indictment alleges that the defendants, along with at least fifteen coconspirators, orchestrated a scheme that netted over $110 million in illicit proceeds.

Plaintiff alleges that beginning in April 2025, Lai Kui Sen and co-conspirators engineered a fraudulent sequence of securities offerings specifically designed to place the majority of OST shares in the hands of at least fifteen co-conspirators for pennies per share or, in many cases, for no consideration whatsoever. These securities offerings were synchronized with a fraudulent campaign to artificially inflate the price and trading volume of the OST stock through social media and messaging service applications, including paid promotions that impersonated actual investment advisors and financial professionals.

During the class period, the fraudulent promotional campaign artificially inflated the value of OST from an approximately $22 million company (based on a stock price of $0.78 on April 14, 2025) into a greater than $1 billion company by market capitalization (based on a peak stock price of $9.40 on June 26, 2025). As OST's stock price rose, Yan Zhao and Lai Kui Sen facilitated the opening of brokerage accounts on behalf of co-conspirators, which were used to hold the millions of OST shares that were obtained through non-bona fide securities offerings to the co-conspirators.

On June 26, 2025, OST investors suffered devastating losses when the selloff destroyed over $950 million (representing over 94%) of OST’s market capitalization in a single day. The stock plummeted from an intraday high of $9.40 to a closing price of $0.55.

What Now: You may be eligible to participate in the class action against Ostin Technology Group Co., Ltd. Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by April 17, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.