Law Offices of Frank R. Cruz Encourages Smart Digital Group Limited (SDM) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES–(BUSINESS WIRE)–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.

IF YOU SUFFERED A LOSS ON YOUR SMART DIGITAL GROUP LIMITED (SDM) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.

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 suspended 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 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.

Contact Us To Participate or Learn More:

If you purchased SDM securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz

2121 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Law Offices of Frank R. Cruz

2121 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com