Portnoy Law Firm Files Class Action on Behalf of China Liberal Education Investors

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The Portnoy Law Firm has filed a class action lawsuit on behalf of investors who bought shares of China Liberal Education Holdings Limited between January 22, 2025 and January 30, 2025. The lawsuit alleges that China Liberal utilized illegal means, including coordinating with criminal scammers, to artificially inflate the price of its stock through a pump-and-dump scheme, causing over $300 million in losses to investors when the fraud was exposed on January 30, 2025.

Why it matters

This case highlights the growing problem of stock manipulation schemes targeting retail investors, often through social media platforms and messaging apps. The alleged actions by China Liberal and its co-conspirators raise concerns about the integrity of public markets and the need for stronger regulatory oversight to protect everyday investors.

The details

According to the complaint, scammers recruited victims through advertisements on Facebook and Instagram, luring them into WhatsApp groups where they posed as financial advisors and encouraged the purchase of China Liberal's stock, which they were manipulating. The plaintiffs allege that this allowed China Liberal and its co-conspirators to unload their holdings at artificially inflated prices, reaping massive illegal profits.

• The class period covers the period from January 22, 2025 to January 30, 2025, inclusive.
• Investors have until March 31, 2026 to file a lead plaintiff motion.

What they’re saying

What’s next

The judge will decide on March 31, 2026 whether to allow the class action lawsuit to proceed.