Shareholders who acquired iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) shares in or traceable to the Company’s $9,000,000 September 2024 IPO at $4.00 per share are urged to review their options, as a securities class action alleges the registration statement omitted the specific manipulation risk that later erased 95% of the stock’s value.

NEW YORK, Aug. 5, 2026 /PRNewswire/ — Levi & Korsinsky, LLP announces that a securities class action has been filed against iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) (NASDAQ: ITOC, PTHL). YOU MAY BE AFFECTED IF YOU: purchased iTonic stock between September 5, 2024 and July 29, 2025; lost money on your iTonic investment; or acquired shares in or traceable to the Company’s initial public offering. Find out if you might qualify for recovery or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

iTonic shares collapsed approximately 95%, a decline of $29.31 per share in one day, from a closing price of $30.96 on July 28, 2025 to just $1.65 on July 29, 2025. Motions for lead plaintiff must be filed with the Court by September 29, 2026.

The Alleged Registration Statement Misrepresentations

The IPO priced 2,250,000 Class A ordinary shares at $4.00 per share for gross proceeds of $9,000,000. The action contends that the offering documents described the Company’s brachytherapy software business and its purported market position while omitting the specific, foreseeable risk that the shares would become the target of a coordinated promotional and manipulation scheme. As pleaded, the registration statement’s volatility warnings were generic and did not disclose that the underwriters and auditor named in the action had prior involvement with foreign microcap offerings that experienced structurally similar collapses.

What the Registration Statement Allegedly Misrepresented

• The absence of any disclosure regarding the specific risk of a fabricated-rumor manipulation campaign targeting a low-float foreign microcap listing
• Boilerplate volatility language that, plaintiffs allege, warned only of “extreme stock price run-ups followed by rapid price declines” in the abstract
• Two acknowledged material weaknesses in internal control over financial reporting, including a lack of personnel with sufficient U.S. GAAP expertise and no formal risk assessment framework
• The concentration of approximately 95.97% of combined voting power in a single insider through a dual-class structure
• Financial results reflecting total revenue of $628,591 for 2023, down from $679,777 for 2022, which plaintiffs allege could not support the later surge to $32.00
• The professional history of the offering participants with prior microcap listings that later suffered comparable single-session declines

Alleged IPO Proceeds and Defendant Motivation

On August 1, 2025, the Company issued a press release stating that its share price had been “influenced” by “false rumors” of a Gilead Sciences acquisition and that it had “no contact with Gilead, and any statements or reports suggesting otherwise were and are entirely false and fabricated.” Plaintiffs allege the disclosure corrected prior alleged misstatements and omissions concerning the nature of the trading activity in the securities.

“The PSLRA provides important protections for investors harmed by alleged securities violations, and offering documents are where those protections begin. Here the complaint alleges the registration statement’s volatility language never addressed the specific manipulation risk that investors ultimately bore.” — Joseph E. Levi, Esq.

Submit your information now or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until September 29, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the iTonic Lawsuit

Q: Who is eligible to join the iTonic investor lawsuit? A: Investors who purchased iTonic stock or securities between September 5, 2024 and July 29, 2025 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

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: 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 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 documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

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 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.

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, with no retainer and no out-of-pocket costs. Any attorneys’ fees and expenses awarded to class counsel are subject to court approval.

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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