Critical Information: RGC Investors Lost $3.09 Per Share as Market Sentiment Collapsed Following DOJ Subpoena Revelation, Exposing Alleged Disconnect Between $14 Billion Valuation and Zero Revenue
NEW YORK, May 18, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP alerts investors in Regencell Bioscience Holdings Limited (NASDAQ: RGC) that a securities class action has been filed on behalf of stockholders who purchased securities between October 28, 2024 and October 31, 2025. Find out if you qualify to recover your per-share losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
From a closing price of $16.65 on October 31, 2025, RGC shares declined to $13.56 on November 3, 2025, an 18.56% drop representing $3.09 per share in losses after Regencell disclosed a DOJ subpoena investigating trading in its ordinary shares. The last day to move for lead plaintiff is June 23, 2026.
The Early Optimism
Regencell’s stock captivated market participants with an extraordinary ascent. From trading below $0.30 per share at the start of the Class Period, the shares surged to a Class Period high of $78.00 on June 17, 2025, a staggering 48,650% increase. This rally occurred despite the company having no revenue, no approved products, and only twelve employees. As The Wall Street Journal later noted, only 20 of the 261 companies in the Nasdaq Biotechnology Index had a greater market value than Regencell’s approximately $14 billion valuation.
Investors who purchased during this period did so in an environment where the lawsuit contends management’s disclosures attributed volatility to benign factors like short squeezes and third-party social media commentary, rather than disclosing the company’s vulnerability to market manipulation.
The Growing Concerns
Even before the corrective disclosure, the filing states that warning signs were present. The company effectuated a 38-for-1 stock split in June 2025, publicly framing it as a liquidity enhancement measure. Yet the shares experienced extraordinary single-day swings, with an intra-day range from $26.20 to $83.60 on June 16, 2025 alone. The company itself acknowledged that these fluctuations were “unrelated or disproportionate to the operating performance of our company.”
The Breaking Point
On October 31, 2025, Regencell disclosed that it had received correspondence and a subpoena from the U.S. Department of Justice indicating an active investigation into trading in its ordinary shares. The DOJ requested documents concerning corporate operational, financial, and accounting matters. The company acknowledged it “may be required to pay fines, penalties, damages or settlement costs.”
Sentiment Arc and Investor Harm
- Regencell traded below $0.30 per share from the Class Period start through mid-March 2025, then surged 48,650% to $78.00 by June 17, 2025, on no material business news
- The company admitted R&D spending of approximately $1 million annually while its own filings stated new medicines cost $4 billion to $10 billion to develop
- Defendant Yat-Gai Au owned 88.6% of outstanding shares throughout, making the public float extraordinarily thin
- Post-June 2025 peak, sentiment deteriorated as the stock oscillated between $10.00 and $20.00 with no fundamental catalyst
- The DOJ subpoena disclosure on October 31, 2025 triggered the 18.56% single-session loss that crystallized shareholder harm
Join the RGC recovery action or call (212) 363-7500.
“When companies fail to disclose material information, shareholders may suffer significant losses. The trajectory of RGC’s share price and the subsequent DOJ investigation raise important questions about what investors were told versus what was actually occurring in the trading of these shares,” stated Joseph E. Levi, Esq.
See if you can recover losses from your RGC investment or contact Joseph E. Levi, Esq. at (212) 363-7500.
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.
Frequently Asked Questions About the RGC Lawsuit
Q: How much did RGC stock drop? A: Shares fell approximately 18.56%, a decline of $3.09 per share, after Regencell disclosed on October 31, 2025 that it received a DOJ subpoena investigating trading in its ordinary shares. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.
Q: When did Regencell Bioscience allegedly mislead investors? A: The class period runs from October 28, 2024 to October 31, 2025. During this time, the complaint alleges management made materially false or misleading statements about the company’s vulnerability to market manipulation and the associated regulatory risks. The alleged fraud was revealed through the corrective disclosure of the DOJ investigation.
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 [email protected] 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 the shares. Investors who bought during the class period and sold at a loss may still participate.
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.
Q: What court was the RGC class action filed in? A: The case was filed in the United States District Court for the District of Maryland, governed by the Private Securities Litigation Reform Act of 1995.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
