Ostin Technology Group Investors Seek Compensation for Losses

Robbins LLP Investigates Alleged Pump-and-Dump Scheme that Defrauded Investors

Published on Mar. 2, 2026

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Robbins LLP has filed a class action lawsuit on behalf of investors who purchased Ostin Technology Group Co., Ltd. (OST) ordinary shares between May 11, 2025 and June 26, 2025. The lawsuit alleges that OST's co-CEO Lai Kui Sen and financial advisor Yan Zhao orchestrated a fraudulent scheme to artificially inflate the company's stock price through a series of non-bona fide securities offerings and a promotional campaign, before dumping their shares and causing the stock to plummet over 94% in a single day, resulting in over $950 million in losses for investors.

Why it matters

This case highlights the risks investors face from alleged pump-and-dump schemes, where company insiders manipulate stock prices for personal gain at the expense of public shareholders. The lawsuit seeks to recover losses for affected OST investors and hold the responsible parties accountable for their alleged misconduct.

The details

According to the complaint, Lai Kui Sen and Yan Zhao, along with at least fifteen co-conspirators, engineered a fraudulent sequence of securities offerings to place the majority of OST shares in the hands of the co-conspirators for pennies or no consideration. They then orchestrated a promotional campaign to artificially inflate the stock price and trading volume, before facilitating the opening of brokerage accounts for the co-conspirators to dump their shares. On June 26, 2025, the stock plummeted from an intraday high of $9.40 to a closing price of $0.55, destroying over $950 million in market capitalization.

  • The class period is from May 11, 2025 to June 26, 2025.
  • On September 12, 2025, the U.S. Department of Justice unsealed a criminal indictment against Lai Kui Sen and Yan Zhao.

The players

Lai Kui Sen

Co-Chief Executive Officer of Ostin Technology Group Co., Ltd.

Yan Zhao

Financial advisor to Ostin Technology Group Co., Ltd.

Robbins LLP

A recognized leader in shareholder rights litigation, representing investors in the class action lawsuit against Ostin Technology Group Co., Ltd.

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What’s next

Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by April 17, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.

The takeaway

This case highlights the importance of investor vigilance and the need for robust regulatory oversight to protect the integrity of the stock market. Shareholders who suffered losses from the alleged Ostin Technology Group pump-and-dump scheme may be eligible to participate in the class action lawsuit and recover their losses.