Investors Face September Deadline in Park Ha Biological Technology Lawsuit

The litigation centers on allegations that the company intentionally structured its IPO with a public float of only 1.2 million shares—less than 5% of its total outstanding stock—to facilitate price manipulation. The complaint asserts that this thin float allowed promotional campaigns to artificially inflate the share price from $4.00 to an intraday peak of $41.49 by July 7, 2025. During this period, the company’s market capitalization briefly exceeded $1 billion, despite its core business consisting of a modest skincare franchise network in China.

On July 8, 2025, the stock collapsed, losing approximately 93% of its value in a single trading session as over 8.9 million shares changed hands. The lawsuit contends that management failed to address false rumors, including claims of a partnership with a global cosmetics firm, while providing generic risk disclosures that ignored the specific artificial trading activity. Joseph E. Levi, the attorney representing the class, argues that the offering structure was designed to produce explosive price movements based on minimal buying pressure, leaving public shareholders exposed to extreme volatility.