RGC Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Regencell Bioscience Holdings Securities Lawsuit - Contact Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries Holding RGC: A $14 Billion Market Valuation Built on Zero Revenue and Twelve Employees Now Faces a DOJ Investigation, Creating Potential Fiduciary Exposure

NEW YORK, May 27, 2026 /PRNewswire/ -- Institutional investors holding positions in Regencell Bioscience Holdings Limited (NASDAQ: RGC) during the period October 28, 2024 through October 31, 2025 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

RGC shares traded below $0.30 for most of the Class Period before surging to $78.00 per share on June 17, 2025 before swiftly collapsing the following week, and declining a further 18.56% to only $13.56 per share on November 3, 2025 after the Company disclosed a U.S. Department of Justice subpoena. The window to apply for lead plaintiff closes on June 23, 2026.

Notice to Institutional Holders

Fund managers, pension trustees, and fiduciaries who acquired RGC ordinary shares during the Class Period face a distinct set of considerations. The lawsuit contends that Regencell's public filings contained materially misleading statements about the Company's vulnerability to market manipulation and the financial risks posed by extraordinary share price volatility that bore no relationship to underlying business performance. For institutions that held RGC based on publicly available disclosures, the alleged omissions may implicate portfolio oversight and due diligence obligations.

Contact us for institutional recovery options or call (212) 363-7500.

ERISA and Fiduciary Considerations

Institutional holders owe beneficiaries a duty of prudent oversight. Where a portfolio company's $14 billion market capitalization rests on twelve employees, no approved products, no revenue, and annual R&D spending of approximately $1 million, as alleged, the subsequent disclosure of a federal criminal investigation into share trading may trigger review obligations under ERISA and analogous fiduciary standards.

Fiduciary Obligations and Recovery Options

• Institutions with the largest documented losses during the Class Period are best positioned to serve as lead plaintiff and direct litigation strategy on behalf of the entire class
• Lead plaintiff appointment carries no additional financial obligation; securities class actions proceed on a contingency basis with zero out-of-pocket cost to the class representative
• Serving as lead plaintiff allows institutional investors to select counsel, oversee settlement negotiations, and fulfill active stewardship responsibilities
• Fiduciaries may have an independent obligation to evaluate whether participation in this action is consistent with their duty of care to fund beneficiaries
• The PSLRA gives preference to movants with the largest financial interest in the relief sought, favoring institutional participants

Portfolio Impact Assessment

The action alleges that Regencell's share price was artificially maintained by misleading disclosures that downplayed market manipulation risks and attributed extreme volatility solely to short-selling and third-party social media activity. As pleaded, when the DOJ subpoena was revealed on October 31, 2025, the market repriced RGC shares, producing a single-session decline of $3.09 per share. Institutions that acquired shares at prices reflecting the alleged artificial inflation bore concentrated losses.

"Institutional investors play a critical role in securities class actions. Their participation ensures rigorous oversight of the litigation process and protects the interests of all class members, including individual retail shareholders who may lack the resources to monitor complex proceedings independently." -- Joseph E. Levi, Esq.

Case Summary

The securities action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint charges that Regencell and certain officers made false and misleading statements about the Company's exposure to market manipulation and the resulting risk of governmental scrutiny. The corrective disclosure came when the Company revealed it had received a DOJ subpoena and correspondence related to an investigation into trading in its ordinary shares, as well as corporate operational, financial, and accounting matters.

Contact us for institutional recovery options or contact Joseph E. Levi, Esq. at (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the RGC Lawsuit

Q: Who is eligible to join the RGC investor lawsuit? A: Investors who purchased RGC stock or securities between October 28, 2024 and October 31, 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 is the RGC lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is June 23, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

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 does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I already sold my RGC shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of investor's country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP