Investors Face September Deadline in iTonic Securities Class Action

The legal action, filed in the U.S. District Court for the Southern District of New York, targets iTonic Holdings—formerly known as Pheton Holdings—for its handling of the company’s public offering. Plaintiffs claim that while the IPO raised $9 million through the sale of 2.25 million shares at $4.00, the offering documents failed to warn of a foreseeable risk regarding coordinated market manipulation. Instead, the company provided generic volatility warnings that allegedly omitted the professional history of the underwriters and auditors involved.

The situation escalated on July 29, 2025, when iTonic shares plummeted from a closing price of $30.96 to $1.65. This dramatic drop followed reports of fabricated rumors regarding a potential acquisition by Gilead Sciences, which the company later disavowed. Beyond the alleged manipulation, the lawsuit points to internal control weaknesses, including a lack of U.S. GAAP expertise and a highly concentrated voting structure that placed 95.97% of power in a single insider.

Attorney Joseph E. Levi of Levi & Korsinsky, LLP, which is representing the class, argues that the registration statement failed to address the specific threats investors ultimately faced. Eligible participants include anyone who purchased shares between September 5, 2024, and July 29, 2025, and suffered financial losses. The firm notes that investors are not required to hold the stock currently to qualify for potential recovery, as the case centers on purchase activity during the specified period.