CHOW Investor Alert: ChowChow Cloud International Holdings Limited Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Management Allegedly Omitted Manipulation Risks: Levi & Korsinsky

Time-Sensitive: Allegations Focus on Omitted Risk Disclosures Regarding Fraudulent Trading Activity

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP alerts investors in ChowChow Cloud International Holdings Limited (NYSE American: CHOW) of a pending securities class action. Class Period: September 16, 2025 through December 10, 2025. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [e-mail] | [phone].

CHOW shares collapsed 84.3% on December 10, 2025, falling from $11.70 to $1.83 per share after NYSE American halted trading twice due to volatility linked to a market manipulation scheme. The Court has set May 12, 2026 as the deadline to apply for lead plaintiff appointment.

What Management Allegedly Knew

The lawsuit asserts that the Company's public statements and SEC filings presented CHOW as a legitimate cloud solutions provider experiencing 28.6% revenue growth, while omitting that CHOW securities were being actively promoted through a coordinated fraudulent scheme. Impersonators posing as licensed financial advisors allegedly used WhatsApp groups and social media to create artificial buying pressure, touting fabricated investment return targets of "120%-150%."

As alleged, management failed to disclose that these promotional efforts included detailed memoranda claiming the promoters had conducted "in-depth engagements with the [CHOW's B]oard and senior management." The Company issued no public statement acknowledging or denying these representations while its stock price surged on manipulated volume.

Inadequate Risk Warnings in an Era of Microcap Fraud

The action claims that CHOW's risk factor disclosures were generic boilerplate warnings about hypothetical volatility, rather than specific warnings about the realized threat of coordinated market manipulation targeting the Company's securities. Key allegations include:

• The prospectus warned generally that "persons buying or selling in relatively small quantities may easily influence prices" but did not disclose that such manipulation was allegedly already occurring
• Risk disclosures referenced hypothetical "extreme stock price run-ups followed by rapid price declines" without acknowledging the Company's own stock was exhibiting this exact pattern
• The Company failed to disclose that its sole IPO underwriter, Tiger Securities, had been fined and censured by FINRA in April 2025 for inadequate anti-money laundering controls
• No disclosure was made that CHOW securities faced unique risk of a sustained trading suspension by NYSE American
• The prospectus omitted that Tiger Securities had underwritten other recent microcap IPOs that experienced similar extreme volatility and trading halts

Why Disclosure Adequacy Allegedly Matters to Investors

The distinction between generic risk warnings and specific, actionable disclosures sits at the center of these claims. The lawsuit contends that boilerplate language about possible future volatility cannot substitute for disclosing that the Company's stock was already being driven by a fraudulent promotional campaign. Investors purchasing CHOW shares at prices inflated by artificial demand had no way to assess the true risk of a trading halt or price collapse from the disclosures provided.

"Investors deserve transparency about material risks that could affect their investments. When a company's risk disclosures warn of hypothetical volatility while an active manipulation scheme is allegedly inflating its share price, the gap between what was disclosed and what investors needed to know becomes a central question for the courts." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering damages or call [phone].

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.