Investors Urged to Join Suits Against Four Firms
Law firms are actively recruiting investors for class action lawsuits against multiple companies, alleging securities fraud and misrepresentation. Shareholders of Smart Digital Group, Aquestive Therapeutics, Bath & Body Works, and Nidec Corporation are being encouraged to join legal actions following significant stock losses.
The lawsuit against Smart Digital Group alleges a market manipulation and fraudulent promotion scheme. This scheme reportedly involved misinformation spread on social media and individuals impersonating financial professionals to artificially inflate the stock price. On September 26, 2025, the company's stock plummeted 86.4% before NASDAQ halted trading. Subsequently, the SEC suspended trading of the stock, citing "potential manipulation." Aquestive Therapeutics is under investigation after the company announced on January 9, 2026, that the FDA had found deficiencies in its New Drug Application for Anaphylm, a sublingual film for treating severe allergic reactions. The news caused the company's stock to drop by over 37%. The FDA's notification precluded discussions on labeling and post-marketing commitments at the time, though the specific deficiencies were not initially detailed. For Bath & Body Works, the class action lawsuit claims the company made misleading statements about its growth strategy. The suit alleges that the company's focus on "adjacencies, collaborations and promotions" was failing to expand its customer base and that it relied on brand collaborations to hide weak financial results. The company saw its stock drop 6.9% on August 28, 2025, after cutting its full-year guidance, and another 24.8% on November 20, 2025, after revealing the strategy had not grown its customer base. Japanese electronics manufacturer Nidec Corporation is being investigated for potential securities claims after allegations of "improper accounting" at a subsidiary in China. Following a CNBC report on the matter on September 3, 2025, Nidec's American Depositary Receipts (ADRs) plunged 22.7% the next day. The company later withdrew its full-year forecast for 2025 and cancelled its dividend.
