Levi & Korsinsky, LLP alerts investors in iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) (NASDAQ: ITOC, PTHL) of a pending securities class action covering purchases from September 5, 2024 through July 29, 2025. Check if you might be eligible to recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.

iTonic shares fell approximately 95% in a single session on July 29, 2025, following repeated NASDAQ volatility halts. The offering was priced at $4.00 per share for gross proceeds of $9,000,000. The Court has set September 29, 2026 as the deadline to apply for lead plaintiff appointment. “Investors deserve transparency about material risks that could affect their investments. This action asks whether the professionals who took iTonic public disclosed a manipulation risk they allegedly had already seen play out in other foreign microcap offerings,” said Joseph E. Levi, Esq.

The Alleged Microcap Underwriting and Audit Concentration

The lawsuit asserts that the underwriters and auditor associated with the offering had participated in a series of foreign microcap listings that later experienced extreme run-ups, fabricated deal rumors, and abrupt collapses. As alleged, one such issuer fell roughly 95% in a single session in April 2025 after fabricated acquisition rumors, a pattern the action claims was structurally identical to what later occurred in iTonic shares.

Recurring Patterns in Microcap Offering Disclosure

  • Small public floats paired with dual-class structures concentrating roughly 95.97% of voting power offshore
  • Repeat professional participation across successive foreign microcap offerings later linked to suspected manipulation
  • Risk language describing volatility generally rather than the specific promotional risk alleged
  • Two identified material weaknesses in internal control over financial reporting at the operating subsidiary
  • Reported revenue of $628,591 for 2023, against a share price that later reached $32.00 intraday
  • A congressional committee letter dated March 8, 2026 that the action claims expressly identified iTonic among issuers associated with suspected manipulation

Why Disclosure Adequacy Allegedly Matters to Investors

The action claims that generalized warnings about small-float volatility did not convey the specific, allegedly known risk that iTonic stock would be promoted through impersonators and fabricated Gilead Sciences deal rumors. On August 1, 2025, the Company stated its share price had been influenced by false rumors and that it had no contact with Gilead. The lawsuit asserts investors who purchased at allegedly inflated prices bore the resulting decline.

Learn more about the case or call (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report. 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: Who are the defendants named in the iTonic lawsuit? A: The complaint names the Company along with individual defendants who signed SEC filings or certified disclosures, as well as the offering’s underwriters and its independent auditor.

Q: What do iTonic investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

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 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 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.

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.

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