China Liberal Faces Class Action Lawsuit Over Alleged Pump-and-Dump Scheme

Bragar Eagel & Squire, P.C. files lawsuit on behalf of investors who purchased CLEU shares between January 22-30, 2025

Published on Mar. 6, 2026

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A class action lawsuit has been filed against China Liberal Education Holdings Ltd. (OTCMKTS: CLEUF) in the United States District Court for the Southern District of New York. The lawsuit alleges that the company utilized illegal means, including coordinating with criminal scammers, to carry out a pump-and-dump scheme involving its shares. Investors who purchased CLEU shares between January 22 and January 30, 2025 are encouraged to contact Bragar Eagel & Squire to discuss their legal options.

Why it matters

This case highlights the growing problem of pump-and-dump schemes targeting public companies, which can result in significant losses for unsuspecting investors. The lawsuit against China Liberal raises concerns about the company's corporate governance and the need for stronger regulatory oversight to protect investors from such fraudulent activities.

The details

According to the complaint, China Liberal allegedly worked with scammers who recruited victims through social media platforms like Facebook and Instagram, promoting investment clubs associated with celebrities and well-known investors. The victims were then directed to WhatsApp groups, where the scammers posed as financial advisors and encouraged them to purchase securities whose prices were being manipulated so that the scammers' co-conspirators could unload their holdings at artificially inflated prices, reaping massive illegal profits. The plaintiffs allege that the market became aware of this fraud on January 30, 2025, and the stock price immediately collapsed, causing investors to suffer losses in excess of $300 million.

  • Investors have until March 31, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
  • The class period is from January 22 to January 30, 2025, both dates inclusive.

The players

Bragar Eagel & Squire, P.C.

A nationally recognized stockholder rights law firm that is representing investors in the class action lawsuit against China Liberal Education Holdings Ltd.

Brandon Walker

A litigation partner at Bragar Eagel & Squire, P.C. who is encouraging investors who suffered losses in China Liberal (CLEUF) to contact him directly to discuss their options.

Melissa Fortunato

A partner at Bragar Eagel & Squire, P.C. who is also encouraging investors who suffered losses in China Liberal (CLEUF) to contact her directly to discuss their options.

China Liberal Education Holdings Ltd.

The company that is facing a class action lawsuit for allegedly utilizing illegal means, including coordinating with criminal scammers, to carry out a pump-and-dump scheme involving its shares.

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What they’re saying

“If you purchased or acquired CLEU Shares between January 22 and January 30, 2025 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.”

— Brandon Walker, Litigation Partner, Bragar Eagel & Squire, P.C. (Globe Newswire)

What’s next

The judge in the case will decide on March 31, 2026 whether to appoint a lead plaintiff in the lawsuit.

The takeaway

This case highlights the ongoing issue of pump-and-dump schemes targeting public companies, which can result in significant losses for investors. It underscores the need for stronger regulatory oversight and investor education to protect against such fraudulent activities.