A class action lawsuit was filed against Ostin Group (OST) on February 16, 2026.
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Plaintiffs -shareholders- in the federal securities class action allege that they acquired OST stock at artificially inflated prices between May 11, 2025, and June 26, 2025, known as the “Class Period.” They are now seeking compensation for financial losses incurred upon public revelation of the company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this class action, click here.
What Does Ostin Group Do?
OST is a Chinese display module and polarizer supply company. It engages in the design, development and manufacturing of TFT-LCD modules in numerous sizes. As the company explains, its display modules are primarily used in consumer electronics, outdoor LCD displays and automotive displays. The company also says the polarizers it now makes are used in the TFT-LCD display modules, and that it is in the process of developing polarizers for OLED display panels.
OST has four manufacturing facilities in China. Two in Jiangsu Province are dedicated to making the company’s display modules, and one in Chengdu, Sichuan Province, which houses the manufacturing of OST’s TFT-LCD polarizers. According to OST, another facility in Luzhou, Sichuan Province, is dedicated to making the display modules mostly used in the education sector.
Why are Shareholders Suing OST?
OST and 10 of its senior executives and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about the company’s business and prospects during the Class Period.
Specifically, they are accused of omitting truthful information about certain activities and conduct from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused OST stock to trade at artificially inflated prices during the time in question.
The truth came out on June 26, 2025. That’s when the company’s stock price plummeted by more than 90% in just one day. According to the complaint, more than “$950 million in market capitalization was obliterated as co-conspirators completed their coordinated dump of fraudulently obtained shares.”
As a result of the crash, investors learned that OST’s stock price had been artificially inflated “through manipulation in support of a pump-and-dump scheme, rather than reflecting any legitimate business value.”
Taking a Closer Look
As alleged, the company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.
In a Prospectus Supplement filed with the SEC at the beginning of the Class Period, for instance, the company shared information about the registered direct offering, stating in relevant part: “9,090,908 Class A ordinary shares at $0.55 per share; 18,181,816 warrants exercisable for up to 90,909,080 Class A ordinary shares; and [g]ross proceeds of $5 million.”
Then, in a press release issued that same day to announce the closing of the registered direct offering, OST stated “that the offering would provide capital for the company’s growth and operations.”
Lastly, on a form filed with the SEC on May 12, 2025, the company detailed the Warrant Exchange Agreement dated May 3, 2025 stating in relevant part: “OST and the Select Investors had agreed to exchange all 18,181,816 outstanding warrants for an aggregate of 70,909,082 Class A ordinary shares; [t]he total number of Class A ordinary shares outstanding would increase to 108,130,032; and [t]he warrant exchange was completed without any cash payment from the Select Investors.”
Actions You May Take
If you have purchased the company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, click here.
The deadline to file for lead plaintiff in this class action is April 17, 2026.