A securities class action alleges that iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) director Pengfei Zhang, the brother of the Company’s founder and CEO, helped oversee public disclosures that allegedly omitted the specific manipulation risk that later erased roughly 95% of iTonic’s share value.

NEW YORK, Aug. 19, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors that Pengfei Zhang is named as an individual defendant in a securities class action brought on behalf of purchasers of iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) (NASDAQ: ITOC, PTHL) securities between September 5, 2024 and July 29, 2025. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

iTonic shares fell from a July 28, 2025 intraday high of $32.00 to a close of approximately $1.65 on July 29, 2025, a single-session decline of roughly 95%. LEAD PLAINTIFF DEADLINE: September 29, 2026.

Pengfei Zhang’s Role During the Class Period

The complaint identifies Pengfei Zhang as a member of the Company’s Board of Directors since March 2023 and a director of the Beijing-based operating subsidiary, Beijing Feitian Zhaoye Technology Co., Ltd. He is the brother of founder, Chairman, and CEO Jianfei Zhang, who was disclosed as controlling approximately 95.97% of the combined voting power following the $9,000,000 September 2024 initial public offering priced at $4.00 per share.

Pengfei Zhang’s Alleged Role

• Served as a director of both the Cayman Islands holding company and its sole PRC operating entity during the Class Period, as named in the action.
• Held, according to the complaint, the power and authority to control the contents of the Company’s SEC reports, press releases, and market presentations.
• Allegedly received copies of the challenged filings before or shortly after issuance, with the ability and obligation to prevent or promptly correct them.
• Sat on a board that disclosed two material weaknesses in internal control over financial reporting, including a lack of formal risk assessment policies and an internal control framework.
• Oversaw disclosures that, plaintiffs allege, warned only generically about microcap volatility while omitting the realized risk that iTonic shares were the target of a coordinated promotional and manipulation scheme built on fabricated Gilead Sciences acquisition rumors.
• Remained a director through the July 29, 2025 collapse, which followed multiple NASDAQ volatility halts, and through the Company’s August 1, 2025 statement that it had “no contact with Gilead.”

“Individual officers and directors who oversee corporate disclosures bear responsibility for their accuracy, and this action raises the question of whether iTonic’s board addressed a manipulation risk that the complaint contends was foreseeable.” — Joseph E. Levi, Esq.

Section 20(a) Context for Pengfei Zhang

The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, along with Securities Act of 1933 claims tied to the IPO Registration Statement. Practically, that means investors may pursue recovery from individuals alleged to have controlled the Company’s public statements, not only from the Company itself.

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until September 29, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the iTonic Lawsuit

Q: Who is eligible to join the iTonic investor lawsuit? A: Investors who purchased iTonic stock or securities between September 5, 2024 and July 29, 2025 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: Who are the defendants named in the iTonic lawsuit? A: The complaint names iTonic Holdings Ltd (f/k/a Pheton Holdings Ltd) along with individual defendants Jianfei Zhang, Zhixin Li, and Pengfei Zhang, as well as the Company’s IPO underwriters and auditor.

Q: What court was the iTonic class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do iTonic 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 jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my iTonic 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 be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis, with no retainer and no out-of-pocket costs. Any attorneys’ fees and expenses awarded to class counsel are subject to court approval.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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