RGC Shareholder Alert: Regencell Bioscience Holdings Limited Securities Class Action Lawsuit - Investors With Losses May Contact Levi & Korsinsky
NEW YORK, May 11, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP encourages investors who suffered losses in Regencell Bioscience Holdings Limited (NASDAQ: RGC) to contact the firm. Those who purchased RGC securities between October 28, 2024 and October 31, 2025 may be entitled to recover damages. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Shares fell $3.09, or 18.56%, to close at $13.56 on November 3, 2025, after the Company disclosed a DOJ subpoena and investigation into trading in its ordinary shares. Investors have until June 23, 2026 to seek lead plaintiff status.
October 28, 2024: The Class Period Opens
Regencell filed its 2024 annual report on Form 20-F with the SEC. The filing contained generic risk factor language warning that Regencell's shares "may be very thinly traded" and that prices "may be highly volatile." As alleged, these warnings failed to address the Company's actual vulnerability to market manipulation or the specific risks that manipulation posed. At this time, the Company's shares traded below 30 cents.
May 1, 2025: The Unexplained Surge Begins
Regencell's share price suddenly jumped to $2.03 per share, the lawsuit contends, without any corresponding news about the Company's business fundamentals. By the end of May, shares were trading around $20.00, an approximate 900% increase in a single month. Regencell had twelve employees, no revenue, no approved products, and R&D spending of roughly $1 million annually.
June 2, 2025: The 38-for-1 Stock Split Announcement
The Company announced a forward stock split, stating it was "intended to enhance liquidity" and "make the shares more accessible to investors." The action claims this announcement further fueled speculative trading disconnected from business reality.
June 17, 2025: The $78.00 Peak
Regencell shares closed at a Class Period high of $78.00, a 48,650% increase from the start of the Class Period. By the following week, shares had collapsed to slightly above $20.00. According to the filing, no Company disclosures explained the surge.
June 30, 2025: Volatility Acknowledgment Without Disclosure
Regencell filed interim financial results acknowledging that its "stock price has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of our company." The complaint asserts management attributed volatility to short sellers and third-party media rather than disclosing the potential role of market manipulation or the regulatory exposure it created.
October 31, 2025: The DOJ Subpoena Revealed
Regencell disclosed that it "received correspondence and a subpoena from the U.S. Department of Justice," indicating an investigation into trading in the Company's shares. The DOJ requested documents on "corporate operational, financial and accounting matters." The Company warned it "may be required to pay fines, penalties, damages or settlement costs."
Chronology of Material Events
- October 28, 2024: 2024 20-F filed with generic volatility risk factors; shares traded below $0.30
- May 1, 2025: Share price surged to $2.03 on no apparent Company news
- June 2, 2025: 38-for-1 stock split announced to "enhance liquidity"
- June 17, 2025: Shares peaked at $78.00, a 48,650% Class Period increase
- June 30, 2025: Interim report blamed volatility on short sellers and social media
- October 31, 2025: DOJ subpoena disclosed; shares fell 18.56% on the next trading day
See if you can recover losses from RGC's concealed risks or call (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The timeline in this case raises serious questions about what was known internally about Regencell's vulnerability to manipulation and when investors should have been warned about the resulting regulatory exposure." -- Joseph E. Levi, Esq.
Submit your claim before the deadline or contact Joseph E. Levi, Esq. at (212) 363-7500.
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 June 23, 2026.
Frequently Asked Questions About the RGC Lawsuit
Q: When did Regencell Bioscience allegedly mislead investors? A: The class period runs from October 28, 2024 to October 31, 2025. The alleged fraud was revealed through Regencell's disclosure of a DOJ subpoena on October 31, 2025, causing a significant stock decline.
Q: How much did RGC stock drop? A: Shares fell approximately 18.56%, a decline of $3.09 per share, after the Company disclosed the DOJ subpoena and investigation into the trading of its ordinary shares. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.
Q: What do RGC investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my RGC shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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