Announcement • Apr 19
Wolf Haldenstein Adler Freeman & Herz LLP Files Class Action Lawsuit Against Fitness Champs Holdings Ltd
Wolf Haldenstein Adler Freeman & Herz LLP announced that it has filed a class action lawsuit in the United States District Court for the Southern District of New York, captioned Lim Yen Nee v. Fitness Champs Holdings Ltd, et.al, Case 1:26-cv-03182, on behalf of persons and entities that purchased or otherwise acquired Fitness Champs Holdings Ltd. securities between September 3, 2025, and September 23, 2025, inclusive. Plaintiff pursues claims against Fitness Champs Holdings Ltd, its executives Joyce Lee Jue Hui, Koh Yong Mong, Teoh Siew Thim, Bancroft Capital LLC, and Onestop Assurance PAC, as well as unidentified John Does 1-100, under the Securities Exchange Act of 1934. The Company conducts its purported business operations in Singapore through two wholly owned subsidiaries: Fitness Champs PTE LTD and Fitness Champs Aquatics PTE LTD. Fitness Champs Holdings Ltd. purports on its website to be “a distinguished sports education provider, playing a pivotal role in shaping the aquatic landscape in Singapore.” The Company completed its initial public offering on September 4, 2025, selling two million ordinary shares at an offering price of $4.00 per share, raising $8 million in gross proceeds. Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and the true nature of the trading activity in the securities. Specifically, Defendants failed to disclose to investors that: (1) Fitness Champs Holdings Ltd. was the subject of a market manipulation and fraudulent promotion scheme involving social-media based misinformation and impersonators posing as financial professionals; (2) Fitness Champs Holdings Ltd’s public statements and risk disclosures omitted any mention of the realized risk of fraudulent trading or market manipulation used to drive the Company’s stock price; (3) as a result, Fitness Champs Holdings Ltd. securities were at unique risk of a sustained suspension in trading by NASDAQ and severe volatility-induced decline; (4) the sole underwriter on the IPO, Bancroft, had conducted numerous microcap IPOs that suffered volatility-induced declines resulting from market manipulation schemes; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis. This case arises from the sudden collapse of Fitness Champs Holdings Ltd’s stock price on September 23, 2025, due to a fraudulent market manipulation scheme that caused the Company’s stock price to trade as high $7.20 per share on September 19, 2025, despite no fundamental news to justify such a spike in the Company’s stock price. Investigation and public reports have revealed that Fitness Champs Holdings Ltd. was a vehicle utilized in a market manipulation and “pump-and-dump” promotional scheme. Impersonators acting as financial advisors touted Fitness Champs Holdings Ltd. in online forums, chat groups, and social media posts, with baseless claims to create a buying frenzy amongst retail investors. On September 23, 2025, the Company’s stock price collapsed 84.6% to close at $1.07 per share, down from $6.95 per share on the prior day’s close of trading. Shares of Fitness Champs Holdings Ltd. have continued to trend lower after the end of the class period and now trade below $0.40 per share.
