The lawsuit targets the company and its top executives, CEO Darren Hoo and CFO Ng Kai Tie, alleging they facilitated a pump-and-dump scheme that misled shareholders. Between September 2025 and March 2026, Megan Holdings shares surged over 400% without fundamental business justification, only to crater on March 26, 2026, when the alleged manipulation was exposed.
Legal filings contend that Hoo, who maintained nearly 62% control of the company, and Ng possessed the authority to prevent the dissemination of false information but failed to do so. The complaint highlights that the company’s IPO disclosures were materially inadequate, omitting the risks of coordinated market manipulation and ignoring internal accounting weaknesses. In addition to the company officers, the litigation names auditor WWC, P.C. and underwriter D. Boral Capital LLC as defendants, asserting they had opportunities to intervene in the issuance of fraudulent filings.
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