The legal action, filed by Levi & Korsinsky, LLP, targets the company and key executives, including CFO Xiaoyan Zhu, for alleged failures to disclose the risks associated with the firm’s low public float. According to the complaint, the company’s December 2024 registration statement failed to warn investors that the stock was susceptible to coordinated manipulation, including a pump-and-dump scheme purportedly facilitated by impersonators in private messaging groups.
Investors who acquired BYAH securities between December 27, 2024, and July 8, 2025, claim that the company presented a thriving skincare franchise business while obscuring a structure that left shares vulnerable to volatility. The collapse occurred on July 8, 2025, when the stock price plummeted from an intraday high of $41.49 to close at $2.99. The lawsuit asserts claims under both the Securities Act and the Exchange Act, arguing that officers who signed the offering documents bear personal responsibility for the accuracy of these disclosures.
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