NEW YORK, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP encourages investors who suffered losses in iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) (NASDAQ: ITOC, PTHL) to contact the firm. WHO IS AFFECTED: Those who purchased iTonic securities between September 5, 2024 and July 29, 2025 may be entitled to recover damages. Find out if you might be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
On July 29, 2025, iTonic shares fell approximately 95%, a decline of roughly $29.31 per share, closing near $1.65 after multiple intraday NASDAQ volatility halts. Those wishing to serve as lead plaintiff must act by September 29, 2026.
September 5, 2024 — The Offering Opens the Class Period
The Company completed its initial public offering of 2,250,000 Class A ordinary shares at $4.00 per share, raising gross proceeds of $9,000,000. The complaint recounts that the offering materials disclosed two material weaknesses in internal control over financial reporting and only generic warnings about small-float volatility.
July 28, 2025 — The Intraday Peak at $32.00
Shares reached an all-time intraday high of $32.00. As detailed in the action, no material corporate development or legitimate business prospect supported that valuation, and promoters allegedly circulated fabricated claims that Gilead Sciences, Inc. planned to acquire or partner with the Company on August 6, 2025.
July 29 and August 1, 2025 — Collapse, Then Acknowledgment
After repeated trading halts, the stock closed near $1.65. Days later, the Company issued a press release stating that its share price had been "influenced" by "false rumors" and that it had "no contact with Gilead, and any statements or reports suggesting otherwise were and are entirely false and fabricated."
Chronology of Alleged Disclosure Failures
- September 5, 2024: IPO priced at $4.00 per share; $9,000,000 raised.
- Fiscal 2023 reported revenue of $628,591, down from $679,777 in fiscal 2022.
- Two identified material weaknesses in internal control remained outstanding, including a lack of formal risk assessment policies.
- July 28, 2025: Intraday high of $32.00, eight times the offering price.
- July 29, 2025: Approximately 95% single-session decline following NASDAQ halts.
- August 1, 2025: Company acknowledgment of false Gilead rumors; the lawsuit chronicles that risk disclosures signed by management, including the Chief Financial Officer, never warned of the realized manipulation risk.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The complaint alleges that between the $4.00 offering price and the $32.00 intraday high, investors were never told of the specific manipulation risk that later materialized." -- Joseph E. Levi, Esq.
Click here to submit your information and learn more about the case or call (212) 363-7500.
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Frequently Asked Questions About the iTonic Lawsuit
Q: When did iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) allegedly mislead investors? A: The Class Period runs from September 5, 2024 to July 29, 2025.
Q: How much did iTonic stock drop? A: Shares fell approximately 95%, a decline of roughly $29.31 per share, closing at approximately $1.65 on July 29, 2025. Investors who purchased during the Class Period at allegedly inflated prices and suffered losses may be eligible to seek compensation.
Q: What court was the iTonic class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do iTonic investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my iTonic shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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