SUEWALLST, LLP: OST FRAUD TIMELINE REVEALS 73-DAY PATH TO $950M INVESTOR WIPEOUT
Key Dates and Disclosure Events Shareholders Need to Know
April 14, 2025: OST closes at $0.78. April 15, 2025: A $5 million registered direct offering closes, placing shares with select participants at $0.55 each. May 7, 2025: Over 70 million additional shares are issued for zero cash through a warrant exchange. May 11, 2025: A coordinated promotional campaign allegedly begins. June 26, 2025: OST touches $9.40 before collapsing 94.1% to $0.55, destroying over $950 million in market capitalization in a single session.
NEW YORK, April 16, 2026 /PRNewswire/ -- SueWallSt encourages investors who suffered losses in Ostin Technology Group Co., Ltd. (Nasdaq: OST) to contact the firm. Those who purchased OST securities between May 11, 2025, and June 26, 2025, may be entitled to recover damages. Find out if you are eligible to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
OST shares lost $8.85 per share on June 26, 2025, a 94.1% single-day collapse from a peak of $9.40 to a close of $0.55. The window to apply for lead plaintiff closes on April 17, 2026.
April 14–15, 2025: The Foundation Is Laid
With OST trading near its 52-week low, the lawsuit contends that a registered direct offering closed on April 15, 2025, placing 9,090,908 shares with a group of at least fifteen participants at $0.55 per share, a 31% discount to the prior day's close. Factoring in accompanying warrants, the effective cost was allegedly approximately $0.195 per share, an 80% discount. No lock-up restrictions were imposed.
May 3–7, 2025: 70 Million Shares Issued for Zero Cash
As set forth in the complaint, none of the warrant holders exercised a single warrant for cash. Instead, a Warrant Exchange Agreement converted all 18,181,816 warrants into 70,909,082 new shares at zero cost. The filing states that this raised total outstanding shares from approximately 27.4 million to 107.4 million, a dilution of nearly 300%, while placing roughly 75% of all outstanding shares in the hands of alleged co-conspirators.
May 11–June 25, 2025: The Promotional Campaign Inflates the Price
The securities action alleges that beginning May 11, 2025, a sophisticated promotional campaign drove artificial demand through:
- Fake profiles impersonating SEC/FINRA-registered investment advisors
- AI-generated deepfake videos featuring prominent public figures
- WhatsApp groups with hundreds of members receiving daily buy instructions
- Fabricated acquisition rumors supported by a 20-page sham research report
- Promises of "15-25% weekly returns" and "80-150% gains within 4-6 weeks"
- A bait-and-switch tactic where promoters first recommended legitimate stocks to build trust
During this period, OST's market capitalization allegedly surged from $22 million to over $1 billion despite no material corporate developments, continued annual losses of $10.6 million, and institutional ownership of just 0.1%.
June 26, 2025: The Collapse
As claimed in the action, co-conspirators executed a coordinated selloff on June 26, 2025, with trading volume reaching 34.55 million shares, more than five times the daily average. OST fell from $9.40 to $0.55 in hours. The stock continued deteriorating to $0.08 by August 2025, a 99.1% decline from the peak.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology here raises important questions about whether investors received accurate information at each stage of these transactions." — Joseph E. Levi, Esq.
Submit your claim before the deadline or call Joseph E. Levi, Esq. at (888) SueWallSt.
ABOUT THE FIRM — For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by April 17, 2026.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (888) SueWallSt
Fax: (212) 363-7171
SOURCE SueWallSt.com
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