The litigation targets Park Ha Biological Technology Co., Ltd. (NASDAQ: BYAH) and several of its senior executives, including CFO Xiaoyan Zhu. Shareholders allege that the company’s December 2024 registration statement omitted critical details regarding a promotional scheme and a restricted public float of less than 5%. These omissions allegedly left the stock vulnerable to coordinated manipulation, including false claims of a L'Oréal partnership propagated through social media channels.
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Park Ha Biological Technology Investors Face September Lead Deadline
Investors who purchased Park Ha Biological Technology securities between December 2024 and July 2025 have until September 28, 2026, to file as lead plaintiffs in a pending class action. The lawsuit follows a dramatic 93% share price collapse that wiped out over $1 billion in market capitalization.
On July 8, 2025, the stock price plummeted from an intraday high of $41.49 to a close of $2.99, marking a loss of $38.02 per share. The complaint contends that CFO Xiaoyan Zhu, who has served in the role since 2016 and joined the board in 2024, signed the offering documents while failing to disclose the risks of the company's trading structure. According to attorney Joseph E. Levi, the legal action aims to hold individual officers accountable for the accuracy of these corporate disclosures under the Securities Act and the Exchange Act. Investors seeking to participate in the class action or recover losses are encouraged to provide brokerage documentation to legal counsel before the September deadline.
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