Complaint alleges IPO underwriter D. Boral Capital LLC had a pattern of conducting microcap IPOs plagued by manipulation-driven collapses, while Megan Holdings suffered from material weaknesses in internal accounting controls that left investors unprotected.

NEW YORK, July 15, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Megan Holdings Limited (NASDAQ: MGN) that a class action complaint has been filed in the United States District Court for the Southern District of New York on behalf of shareholders who purchased MGN securities between September 26, 2025, and March 25, 2026, inclusive. The lawsuit names Megan Holdings, CEO Darren Hoo AKA Hoo Wei Sern, CFO Ng Kai Tie, underwriter D. Boral Capital LLC, and auditor WWC, P.C. as defendants.

Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at (212) 363-7500 or jlevi@levikorsinsky.com. The lead plaintiff deadline is September 8, 2026.

The Underwriter's Track Record of Microcap IPO Disasters

Central to the complaint's allegations is the role played by D. Boral Capital LLC ("DBC"), which served as the sole bookrunning manager and underwriter on Megan Holdings' September 2025 IPO. According to the complaint, DBC agreed to conduct the IPO on a firm commitment basis and was responsible for disseminating the Company's Prospectus to investors.

The complaint details a disturbing pattern: DBC has been involved in numerous other microcap initial public offerings since January 2024 that proved "similarly disastrous for investors." These include:

• Park Ha Biological Technology, Co. Ltd. (December 2024 IPO) — DBC served as co-lead underwriter; shares collapsed in July 2025, losing 94% of value.
• Masonglory Limited (July 2025 IPO) — DBC served as sole underwriter; shares collapsed approximately 97.6% from their highest closing price, including an 85.5% single-day decline on October 2, 2025.
• Phoenix Asia Holding (April 2025 IPO) — DBC served as lead representative underwriter; shares experienced a dramatic run-up to $133.12 from an opening of $12.35 on January 30, 2026, before collapsing to $17.60 the next trading day.
• Robot Consulting Co., Ltd. (July 2025 IPO) — DBC served as lead representative underwriter; the SEC halted trading between October 23 and November 5, 2025, and NASDAQ subsequently halted trading pending an information request that remains in effect.
• rYojbaba Co., Ltd. (August 2025 IPO) — DBC served as lead underwriter; shares spiked 58.3% intraday before declining sharply, ultimately falling to just $1.99 per share.

Despite this documented history of volatility-induced collapses and manipulation in IPOs underwritten by DBC, the complaint alleges that the Offering Documents failed to adequately disclose the heightened risk that Megan's stock would be similarly targeted.

Material Weaknesses in Internal Controls

The complaint further alleges that Megan Holdings suffered from material weaknesses in its internal accounting and financial reporting controls. The Company's own Prospectus acknowledged that prior to its IPO, Megan was "a private company with limited accounting personnel and other resources to address our Company's internal controls and procedures," and that management had never performed an assessment of the effectiveness of its internal controls over financial reporting.

The Company's risk factor disclosures stated: "If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately or timely report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected."

According to the complaint, these were not hypothetical risks — they were conditions that already existed and contributed to the environment that allowed the pump-and-dump scheme to unfold. Despite acknowledging the possibility of fraud resulting from inadequate controls, the defendants allegedly failed to disclose that such risks had materialized or were actively being exploited.

The Pump-and-Dump Collapse

Megan Holdings completed its IPO on September 29, 2025, selling 1,250,000 ordinary shares at $4.00 per share for gross proceeds of $5,000,000. The Company, incorporated in the Cayman Islands with operations in Malaysia, purportedly engages in the development, construction, and maintenance of aquaculture farms — specifically shrimp farms — in Sabah, Malaysia.

Beginning in late February 2026, MGN shares surged more than 400%, climbing from $1.23 on February 25, 2026, to an intraday high of $5.18 on March 25, 2026 — despite no fundamental business news to justify such an extraordinary price increase. The complaint alleges this price spike was manufactured by impersonators acting as financial advisors who touted Megan's stock through online forums, chat groups, and social media posts with baseless claims designed to create a buying frenzy among retail investors.

On March 26, 2026, the scheme collapsed. MGN shares cratered 93.4%, falling $3.96 to close at just $0.28 per share. The stock has not recovered and continues to trade well below that level.

What the Complaint Alleges Was Concealed

The complaint asserts that throughout the Class Period, defendants made materially false and misleading statements and failed to disclose that:

1. Megan was the subject of a market manipulation and fraudulent promotional scheme involving social-media based misinformation and impersonators posing as financial professionals;
2. The Company's public statements and risk disclosures omitted any mention of the realized risk of fraudulent trading or market manipulation;
3. Megan securities were at unique risk of trading suspension by NASDAQ and severe volatility-induced decline;
4. DBC, the sole IPO underwriter, had conducted numerous microcap IPOs that suffered similar manipulation-driven collapses;
5. The Company suffered from material weaknesses in its internal accounting and financial reporting controls; and
6. As a result, defendants' positive statements about the Company's business, operations, and prospects were materially misleading and lacked a reasonable basis.

Legal Claims

The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. The complaint alleges that all defendants participated in a common scheme or device to defraud investors by permitting the Company to go public and thereby enabling the market manipulation scheme.

Important Deadline: September 8, 2026

If you purchased Megan Holdings Limited securities during the period from September 26, 2025, through March 25, 2026, and suffered losses, you may be entitled to compensation. Submit your information to join the recovery or contact Joseph E. Levi, Esq. at (212) 363-7500 or jlevi@levikorsinsky.com.

The lead plaintiff deadline of September 8, 2026 applies to investors seeking to serve as lead plaintiff. Class members who do not seek lead plaintiff appointment may still participate in any recovery.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Investors who suffered losses have until September 8, 2026 to seek appointment as lead plaintiff. Attorney Advertising. Prior results do not guarantee similar outcomes.

Frequently Asked Questions About the MGN Lawsuit

Q: Who are the defendants named in the MGN lawsuit? A: The complaint names Megan Holdings Limited and individual defendants including CEO Darren Hoo AKA Hoo Wei Sern and CFO Ng Kai Tie, who signed SEC filings and certified financial disclosures under Sarbanes-Oxley, as well as underwriter D. Boral Capital LLC and auditor WWC, P.C.

Q: What court was the MGN class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I already sold my MGN 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: What if Megan Holdings goes bankrupt before the case resolves? A: Securities class action claims survive bankruptcy in most circumstances. D&O insurance policies are frequently the primary source of settlement funds.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
jlevi@levikorsinsky.com\
Tel: (212) 363-7500\
Fax: (212) 363-7171

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