Faruqi & Faruqi LLP Reminds Smart Digital (SDM) Investors of Critical March 16, 2026 Deadline in Ongoing Securities Class Action

New York, NY – Faruqi & Faruqi LLP, a nationally recognized securities litigation firm, is reminding investors of Smart Digital Group Limited (NASDAQ: SDM) that the deadline to seek appointment as lead plaintiff in a pending federal securities class action lawsuit is March 16, 2026.

The lawsuit, filed in the United States District Court, alleges that Smart Digital and certain of its executives violated federal securities laws by making materially false and misleading statements and failing to disclose critical information to investors. The case centers on allegations that the company misrepresented key aspects of its business operations and financial condition, which may have artificially inflated the price of its securities.

Overview of the Securities Class Action

The complaint alleges that during the relevant class period, Smart Digital issued public statements that were inaccurate and incomplete. According to the filing, these statements may have misled investors about the company’s internal controls, operational integrity, and overall financial health.

When the alleged truth began to emerge, the company’s stock price reportedly declined, causing substantial losses to investors who had purchased shares at inflated prices. The lawsuit seeks to recover damages on behalf of investors who were harmed by the alleged misconduct.

Allegations Against Smart Digital

The lawsuit outlines several key allegations, including:

• Failure to disclose material weaknesses in internal controls.
• Misrepresentation of financial data and operational stability.
• Issuance of statements that lacked adequate factual support.
• Failure to maintain transparent corporate governance practices.

Plaintiffs contend that these alleged actions violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder.

Who May Be Affected?

Investors who purchased or otherwise acquired Smart Digital (SDM) securities during the specified class period may be eligible to participate in the lawsuit. This includes individual shareholders, institutional investors, and other market participants who incurred financial losses due to the alleged misrepresentations.

Participation in the case is open to all class members. However, investors who wish to serve as lead plaintiff must file a motion with the court by March 16, 2026.

Understanding the Role of Lead Plaintiff

The lead plaintiff acts on behalf of the entire class of affected investors. This individual or institutional investor works closely with class counsel to guide litigation strategy, review pleadings, and represent the interests of all class members.

To be appointed as lead plaintiff, an investor typically must demonstrate that they suffered significant financial losses and are capable of fairly and adequately representing the class.

Legal Basis of the Claims

The lawsuit asserts violations of federal securities laws designed to protect investors from fraud and deceptive practices. Specifically, the complaint alleges:

Section 10(b) of the Securities Exchange Act of 1934 prohibits manipulative or deceptive practices in connection with the purchase or sale of securities.

Rule 10b-5 makes it unlawful to make untrue statements of material fact or omit material facts necessary to make statements not misleading.

Section 20(a) establishes liability for individuals who control a company that violates securities laws.

The plaintiffs argue that Smart Digital and certain executives knowingly or recklessly disregarded the accuracy of their public statements, leading investors to rely on incomplete or false information.

Impact on Investors and Market Integrity

Securities class action lawsuits play a critical role in maintaining transparency and accountability in public markets. When companies allegedly fail to provide accurate disclosures, investor confidence can be severely undermined.

The alleged misconduct involving Smart Digital underscores the importance of corporate governance, proper financial reporting, and strict adherence to regulatory standards. Investors depend on reliable disclosures to make informed investment decisions.

Stock Price Reaction

According to the complaint, when corrective disclosures were made or when concerns about the company’s operations surfaced, Smart Digital’s stock experienced volatility and decline. Investors who purchased shares during the class period may have suffered losses as a direct result of the alleged misstatements.

What Investors Should Do Now

Investors who believe they may have been affected are encouraged to:

• Review their investment records and determine whether they purchased SDM securities during the relevant class period.
• Consult with qualified securities litigation counsel to understand their rights.
• Consider filing a motion to be appointed lead plaintiff before the March 16, 2026 deadline.

Importantly, investors do not need to serve as lead plaintiff to be eligible for potential recovery. Class members may remain passive participants and still share in any settlement or judgment obtained.

About Faruqi & Faruqi LLP

Faruqi & Faruqi LLP is a national law firm with offices across the United States. The firm focuses on complex civil litigation, including securities fraud, consumer protection, antitrust, and corporate governance matters.

With a track record of recovering hundreds of millions of dollars for investors, the firm represents individuals and institutions in high-stakes litigation involving publicly traded companies.

Why Deadlines Matter in Securities Litigation

Federal securities laws impose strict deadlines for investors seeking to take an active role in class action cases. Missing the March 16, 2026 deadline could prevent investors from seeking appointment as lead plaintiff, though they may still remain class members.

Timely action ensures that investors preserve their legal rights and maintain the ability to influence the direction of the litigation.

Broader Context: Securities Class Actions in 2026

Securities litigation remains an essential enforcement mechanism within U.S. financial markets. Class actions provide a collective remedy for investors who may individually lack the resources to pursue complex fraud claims.

In recent years, courts have continued to refine standards for pleading scienter (intent to deceive), materiality, and loss causation. The Smart Digital case may contribute to evolving jurisprudence regarding corporate disclosures and internal control representations.

Investor Protection and Accountability

Cases such as this reinforce the responsibility of publicly traded companies to maintain transparent communication with shareholders. Regulatory oversight, combined with private enforcement through class actions, forms a dual system designed to safeguard investor interests.

Conclusion

With the March 16, 2026 deadline approaching, Smart Digital (SDM) investors should carefully evaluate their legal options. The pending securities class action alleges significant disclosure failures and seeks to recover damages for affected shareholders.

Investors are encouraged to remain informed, consult legal counsel if appropriate, and take timely steps to protect their financial interests.

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