RGC Shareholder Alert: Regencell Bioscience Holdings Limited Securities Class Action Lawsuit - Investors Should Contact SueWallSt

The Red Flags: What Insiders Allegedly Knew Before Shareholders Did — Regencell's $14 Billion Valuation Rested on Zero Revenue and Twelve Employees While Market Manipulation Vulnerability Went Undisclosed

NEW YORK, June 4, 2026 /PRNewswire/ -- SueWallSt announces that a securities class action has been filed against Regencell Bioscience Holdings Limited (NASDAQ: RGC).

YOU MAY BE AFFECTED IF YOU:

● Purchased RGC stock between October 28, 2024 and October 31, 2025
● Lost money on your Regencell investment

Submit your information to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Regencell shares fell $3.09 per share, or 18.56%, closing at $13.56 on November 3, 2025, after the Company disclosed a DOJ subpoena investigating trading in its ordinary shares. The lead plaintiff deadline is June 23, 2026.

What They Allegedly Knew

The lawsuit contends that throughout the Class Period, Regencell's leadership was aware that the Company's stock was vulnerable to market manipulation and that the extraordinary volatility bore no relationship to business fundamentals. The Company's own filings acknowledged that price swings were "unrelated or disproportionate to the operating performance of our company." Yet rather than disclose the specific risk that manipulation could trigger governmental enforcement, the action alleges that management buried the issue behind generic warnings about short squeezes and third-party social media commentary.

Defendant Yat-Gai Au owned 88.6% of the Company's shares. As the complaint chronicles, this concentration meant that any significant price movement directly affected his net worth, creating what the filing describes as powerful incentive to remain attuned to trading irregularities.

The Red Flags That Emerged

• Regencell traded below $1.00 per share for years before a sudden 48,650% surge to $78.00 per share by June 17, 2025, with no corresponding business developments
• The Company had twelve employees, zero revenue, zero approved products, and R&D spending of roughly $1 million annually against an acknowledged industry standard of $4 billion to $10 billion per drug
• A 38-for-1 stock split in June 2025 was followed by extreme single-day swings, including an intraday range of $26.20 to $83.60 on June 16, 2025
• Despite these extraordinary patterns, SEC filings attributed volatility only to short sellers and unnamed social media activity
• Post-Class Period, Bloomberg reported three separate double-digit percentage surges in early 2026, each disconnected from any Company news

Inside Knowledge vs. Public Statements

The securities action alleges that the gap between what insiders observed and what shareholders were told was material. Sarbanes-Oxley certifications signed by the Individual Defendants affirmed that SEC filings contained no untrue statements and omitted no material facts. The complaint challenges those certifications, asserting that the filings failed to disclose that market manipulation had subjected Regencell to heightened risk of regulatory scrutiny from the DOJ.

As pleaded in the complaint, the October 31, 2025 annual report finally revealed that the Company had received a DOJ subpoena requesting documents concerning trading activity and "other corporate operational, financial and accounting matters." The filing warned of potential "fines, penalties, damages or settlement costs" and possible "administrative, injunctive, or other proceedings" against the Company and its officers.

"The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public," stated Joseph E. Levi, Esq.

Act now to protect your rights or call (888) SueWallSt.

About the Firm — SueWallSt represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by June 23, 2026.

Frequently Asked Questions About the RGC Lawsuit

Q: When did Regencell allegedly mislead investors? A: The class period runs from October 28, 2024 to October 31, 2025. The alleged concealment was revealed through corrective disclosures on October 31, 2025, when Regencell disclosed the DOJ subpoena, causing shares to decline 18.56%.

Q: What specific misstatements does the RGC lawsuit allege? A: The complaint alleges Regencell made materially false or misleading statements regarding the Company's vulnerability to market manipulation, the financial risks posed by extreme stock volatility, and the resulting heightened risk of governmental scrutiny. When the DOJ investigation was revealed, the stock price declined sharply.

Q: What do RGC investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible as a class member.

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: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

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 missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com