OST's $0.06 Shares Sold as $9.40 Winners — Investors Lost 94%: Levi & Korsinsky, LLP

Promise vs. Reality: The Ostin Technology Performance Gap That Cost Investors $950 Million

NEW YORK--(BUSINESS WIRE)--The promise: guaranteed returns of 80% to 300% on a stock poised for acquisition at a premium. The reality: a 94.1% single-day collapse that destroyed $950 million in market capitalization, leaving thousands of investors across six countries holding shares worth pennies.

Find out if you can recover your investment in the OST fraud. You may also contact Joseph E. Levi, Esq. at [e-mail] or [phone].

OST shares fell from $9.40 to $0.55 on June 26, 2025, a loss of $8.85 per share. The lead plaintiff deadline is April 17, 2026.

The Promise

Beginning in May 2025, a coordinated promotional campaign allegedly made extraordinary representations to retail investors about Ostin Technology Group Co., Ltd. (Nasdaq: OST):

- "15-25% weekly returns" were allegedly promised through WhatsApp groups containing hundreds of members

- OST was characterized as a "high-yield elite core investment" with profits "up to 300%"

- A fabricated 20-page report allegedly claimed "a major OLED display company" would acquire OST at a substantial premium

- AI-generated deepfake videos featuring prominent financial figures were allegedly deployed to manufacture credibility

- Promoters allegedly first recommended legitimate stocks that generated small profits before pivoting to OST, a classic "bait and switch" designed to lower investors' defenses

The Reality

Behind the promotional campaign, the company's actual fundamentals told a starkly different story. The lawsuit asserts that OST was a failing display manufacturer with $38 million in annual revenue, $10.6 million in losses, a negative 27% profit margin, and a debt-to-equity ratio of 9.5. Institutional ownership stood at 0.1%. The company had required multiple reverse stock splits to avoid delisting.

The complaint contends that select investors obtained approximately 80 million shares at an average cost of $0.0625 per share through a registered direct offering and warrant exchange agreement. Those same shares were promoted to retail investors at prices exceeding $9.00 per share, representing a markup of more than 14,000% over the insiders' alleged cost basis.

The Numbers: Promised vs. Actual

| What Was Promised | What Actually Happened |

|---|---|

| 80-150% gains in 4-6 weeks | 94.1% loss in a single day |

| Acquisition at a premium | No acquisition; no material corporate developments |

| $1 billion+ market cap company | $22 million actual market cap pre-scheme |

| "Non-restricted" shares from legitimate offering | DOJ alleges shares were instruments of a pump-and-dump conspiracy |

| "Hold until July 4" for maximum gains | Stock hit $0.08 by August 2025 (99.1% decline from peak) |

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The gap between what OST investors were told and what actually occurred raises profound questions about accountability." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your OST losses or call [phone].

LEAD PLAINTIFF DEADLINE: April 17, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.