Investors who purchased shares in Megan Holdings Limited (NASDAQ: MGN) have a deadline of September 8, 2026, to apply to participate as a lead plaintiff in a class action lawsuit against the company.
The initial lawsuit was filed in the United States District Court for the Southern District of New York. This is a class action filed on behalf of all persons and entities that purchased (or otherwise acquired) Megan Holdings Limited securities between September 26, 2025, and March 25, 2026 (inclusive). The lawsuit also includes claims on behalf of investors who purchased shares from MGN’s initial public offering.
Investors who suffered losses on their MGN investments are encouraged to contact Silver Law Group to discuss whether you could qualify for recovery. If you are an investor who purchased MGN stock during the period but sold it, you may still be eligible to participate. To make a claim, you’ll need brokerage statements showing purchase dates, share quantities, prices paid, and any successive sale dates and prices.
MGN is an aquaculture company operating primarily in Malaysia, focusing on shrimp farm maintenance and hatchery development, according to its prospectus.
The company’s Initial Public Offering (IPO) filed its prospectus on September 26, 2025, creating part of MGN’s Registration Statement. This allowed MGN to issue 1,250,000 ordinary shares at an initial offering price of $4.00 per share. Ultimately, the company raised $5,000,000 in gross proceeds. D. Boral Capital LLC served as the sole book-running manager and underwriter on a firm commitment basis. However, the prospectus had multiple omissions and false statements, especially regarding the company’s internal accounting and financial reporting controls. Also missing was information on underwriter D. Boral Capital’s (DBC) track record handling previous microcap IPOs that experienced similar collapses through market manipulation.
On September 29, 2025, the company finished its initial public offering. The company’s ordinary shares began trading on the NASDAQ Capital Market under the ticker symbol “MGN” at $4.00 per share.
From September of 2025 through February of 2026, individuals posing as “financial advisors” began appearing on various social media outlets hyping MGN’s stock to create a buying frenzy to increase the value of MGN stock. The stock closed at $1.28 on February 18, 2026.
On March 25, 2026, MGN stock peaked intraday trading at $5.18 per share, a 400% increase, and closed over the $4.00 IPO Price at $4.24. The suit alleges that no catalyst would lead to such a sharp, sudden increase, such as news, operational changes, or other company developments that would warrant or support the skyrocketing price. Only the social media promotion campaign raised this stock price.
On March 26, 2026, the market manipulation campaign ended, and MGN stock fell 93.4%, from $3.96 on the prior day’s close of $4.24 to close at just $0.28 per share. MGN stock is still trading in that range and has never recovered. The stock now trades at the company’s actual value.
The company’s underwriter, DBC, is also a defendant in a filed class action.
Silver Law Group is a nationally recognized plaintiff-side securities and investment fraud law firm. With attorneys admitted to practice in New York and Florida, we represent investors nationwide in shareholder litigation involving securities fraud, breaches of fiduciary duty, and other violations of state and federal law.
In 2025, Silver Law Group was named one of the Top 50 Plaintiff Law Firms by ISS Securities Class Action Services. Managing partner Scott Silver chairs the Securities and Financial Fraud Group of the American Association for Justice and serves on the Board of PIABA.
The firm has built a reputation for its leadership in Ponzi scheme and financial fraud litigation, known for pursuing every responsible party—not just the primary wrongdoers, but the banks, auditors, and law firms whose conduct enabled frauds.
Our class action attorneys have broad experience in 10b-5 and other securities class action litigation.
Contact us today for a confidential, no-cost consultation on the potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses.
