Fitness Champs Holdings Ltd. (NASDAQ:FCHL) shares are trending on Wednesday.
FCHL shares jumped 44.36% to $1.92 in after-hours trading on Tuesday, according to Benzinga Pro data.
The surge follows a sharp reversal from the regular session, where shares fell 16.35% to close at $1.33, according to Benzinga Pro.
The Alleged Scheme
The after-hours rally comes despite a class action lawsuit filed by New York-based law firm Pomerantz LLP. The lawsuit alleges that FCHL was used in a coordinated pump-and-dump scheme, a form of securities fraud in which a stock’s price is artificially inflated through false or misleading statements. The alleged perpetrators then sell at the peak and exit their positions, leaving retail investors with steep losses.
According to the complaint, impersonators posing as financial advisors drove FCHL shares to $7.20 on Sep. …
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