Regencell Bioscience Hit With Class Action Lawsuit Alleging Market Manipulation, DOJ Probe
RGC has more than doubled off its 52-week low of $8.704 on light trading volume (0.4× avg).
Summary
A class action lawsuit has been filed against Regencell Bioscience Holdings, alleging market manipulation and inadequate disclosures related to a U.S. Department of Justice subpoena. The DOJ subpoena, disclosed on October 31, 2025, is investigating trading in RGC's shares and corporate matters. The lawsuit highlights the company's zero revenue and extreme stock volatility, including a 48,650% surge, before the stock fell 18.56% on the subpoena news. This legal action poses significant financial and reputational risks for the company. The lead plaintiff deadline is June 23, 2026.
At the time of this announcement, RGC was trading at $27.60 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $13.5B. The 52-week trading range was $8.70 to $83.60. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: PR Newswire.