The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Smart Digital Group Limited (“SDM” or the “Company”) (NASDAQ: SDM) securities between May 5, 2025 and September 26, 2025, inclusive (the “Class Period”). SDM investors have until March 16, 2026 to file a lead plaintiff motion.

Investors with losses exceeding $1,000,000 are encouraged to contact the firm

What Happened?

On September 26, 2025, NASDAQ temporarily halted trading of SDM stock due to volatility after the Company’s stock activity spiked with over 270,000 orders at 9:33 AM alone, approximately 30% of the Company’s average daily volume in a single minute. Trading resumed a little over an hour later with SDM’s stock price plummeting, closing at $1.85 per share, 88% less than the prior day’s closing price.

After market hours, the United States Securities and Exchange Commission (“SEC”)  disclosed a temporary suspension of trading in SDM ordered for September 29, 2025 through October 25, 2025 due to “potential manipulation in the securities of SDM effectuated through recommendations made to investors by unknown persons via social media to purchase the securities of SDM, which appear to be designed to artificially inflate the price and volume of the securities of SDM.”

On October 11, 2025, NASDAQ announced that trading in SDM would remain suspending pending receipt of “additional information requested from the company.” Trading of SDM’s stock continues to remain suspended.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) SDM was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals; (2) insiders and/or affiliates used and/or intended to use offshore or nominee accounts to facilitate the coordinated dumping of shares during a price inflation campaign; (3) SDM’s public statements and risk disclosures omitted any mention of realized risk of fraudulent trading or market manipulation used to drive the Company’s stock price; (4) as a result, SDM securities were at unique risk of a sustained suspension in trading by either or both of the SEC and NASDAQ; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.