Portnoy Law Firm Launches Class Action on Behalf of Smart Digital Group Limited Investors

LOS ANGELES, Feb. 16, 2026 — The Portnoy Law Firm has officially announced the filing of a significant class action lawsuit on behalf of investors in Smart Digital Group Limited (NASDAQ: SDM). The lawsuit represents shareholders who purchased or otherwise acquired shares of Smart Digital Group Limited between May 5, 2025 and September 26, 2025, inclusive, a period now officially designated as the “Class Period.” Investors affected by losses during this timeframe may have a limited window to take legal action, including filing a motion to be appointed as the lead plaintiff in the case.

Overview of the Legal Action

The Portnoy Law Firm’s class action stems from claims that Smart Digital Group Limited and certain unnamed defendants failed to fulfill their obligations to investors by withholding crucial information about the company’s operations and the risks affecting its stock price. According to the complaint, multiple alleged deceptive practices and omissions may have led investors to make decisions without access to accurate disclosures.

Investors who suffered financial losses due to their investments in SDM are encouraged to contact the Portnoy Law Firm for a complimentary evaluation of their case. The firm can provide guidance on how to protect legal rights and navigate the process of joining the class action.

Deadline to File Lead Plaintiff Motion

Those wishing to seek appointment as lead plaintiff in the lawsuit must file a motion by March 16, 2026. This deadline applies to all investors who purchased Smart Digital Group Limited securities during the Class Period. Missing this important legal deadline could impact an investor’s ability to take part in the case and pursue potential compensation for losses incurred.

Allegations in the Class Action Complaint

The class action lawsuit alleges that the defendants failed to disclose several material issues to the public and investors:

• Market manipulation and fraudulent promotion: SDM was allegedly the subject of a coordinated market manipulation scheme. The complaint claims that social media misinformation campaigns and impersonators posing as financial professionals influenced the company’s stock value.
• Suspicious trading activity: It is alleged that insiders or affiliates used offshore or nominee accounts to facilitate coordinated dumping of shares after an initial campaign to inflate the stock price.
• Incomplete risk disclosure: Public statements and risk-related disclosures by the company reportedly omitted mention of the risks posed by fraudulent trading and manipulation.
• Regulatory risk concerning trading suspension: As a result of these alleged practices, SDM securities were reportedly at a unique risk of being suspended from trading by regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) or NASDAQ, a risk that was not adequately disclosed.

If proven, these allegations could show that investors were deprived of the complete information necessary to make fully informed decisions when trading SDM securities.

How Investors Can Get Involved

Investors interested in exploring their legal rights and possibly participating in the class action are encouraged to reach out directly to the Portnoy Law Firm. The firm offers a complimentary case evaluation to assess whether an investor may qualify as part of the class and the potential remedies that may be pursued.

Contact options include calling the firm by phone or sending an email to discuss experiences and losses tied to Smart Digital Group Limited investments. The law firm’s attorneys can advise on next steps and help determine whether pursuing a claim for financial recovery makes sense based on an individual’s situation.

What Happens Next in the Case

Once the lead plaintiff is selected, the class action will proceed through pretrial motions, discovery, and, if necessary, trial proceedings. The selected lead plaintiff acts on behalf of all class members and works with counsel to negotiate settlements or pursue litigation aimed at compensating investors who experienced losses due to alleged wrongdoing.

Class action lawsuits can take months or even years to resolve, depending on the complexity of the case, cooperation from defendants, and court scheduling. Investors should stay informed about updates and deadlines related to the lawsuit as it progresses.

Broader Market and Legal Context

Smart Digital Group Limited is not the only company recently involved in litigation related to alleged securities fraud or misrepresentation. Several law firms have issued alerts and reminders for investors to act quickly in joining class actions against other NASDAQ-listed companies facing similar complaints.

In the broader market, multiple investor rights firms, including Glancy Prongay Wolke & Rotter LLP and Faruqi & Faruqi LLP, have issued reminders about deadlines and opportunities for shareholders of SDM to participate in legal actions that may affect their financial interests.

Final Thoughts for Investors

Participating in a class action lawsuit does not require individuals to take on the legal battle alone — by joining a certified class, investors can be represented collectively while sharing legal costs and risks. However, acting before the deadline is crucial for preserving one’s ability to participate in potential recovery.

If you invested in Smart Digital Group Limited during the specified period and experienced losses, consider contacting legal counsel or the Portnoy Law Firm as soon as possible to explore options. The March 16, 2026 deadline is approaching, and navigating securities litigation without missing important timelines is essential.

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