Lawsuit Alert: Investors who lost money with Regencell Bioscience Holdings Limited (NASDAQ: RGC) should contact the Shareholders Foundation

An investor, who purchased shares of Regencell Bioscience Holdings Limited (NASDAQ: RGC), filed a lawsuit over alleged violations of Federal Securities Laws by Regencell Bioscience Holdings Limited in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Regencell Bioscience Holdings Limited (NASDAQ: RGC) have certain options and for certain investors are short and strict deadlines running. Deadline: June 23, 2026. NASDAQ: RGC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Hong Kong based Regencell Bioscience Holdings Limited operates as a Traditional Chinese medicine (TCM) bioscience company in Hong Kong. Regencell Bioscience Holdings Limited is a purported early-stage bioscience company focused on the research, development, and commercialization of traditional Chinese medicine ("TCM") for the treatment of attention-deficit/hyperactivity disorder ("ADHD") and autism spectrum disorder ("ASD")-two disorders generally considered incurable under current medical consensus. The Company asserts that while "currently available drugs and treatments in the markets for ADHD and ASD aim to suppress or alleviate symptoms," its "TCM formula aim[s] to treat the fundamental cause of neurocognitive disorders." (Emphasis added.)

Regencell Bioscience Holdings Limited is a "controlled company" under the Nasdaq Capital Market's rules. Per Regencell's most recent annual report on Form 20-F, as of June 30, 2025, 88.8% of its shares were held by its directors and executive officers, with 88.6% of those shares owned by Defendant Yat-Gai Au ("Au")-the Company's founder, Chairman, and Chief Executive Officer. Today, 88.56% of Regencell's shares are held by insiders.

From October 28, 2024 through approximately mid-March 2025, Regencell Bioscience Holdings Limited's ordinary shares generally traded at less than 30 cents per share. However, beginning in early May 2025, the price for these shares suddenly skyrocketed, closing at a high of $78.00 per share on June 17, 2025.

By the following week, the Company's share price had plummeted, closing in a range only slightly higher than $20.00 per share.

The rise in Regencell Bioscience Holdings Limited's ordinary share price has no evident connection to any public disclosures regarding its underlying business fundamentals. Regencell Bioscience Holdings Limited has twelve employees, no approved or salable products, no revenue, and has incurred operating losses since its formation. Further, notwithstanding its stated goal of curing medical disorders that are widely considered incurable, the Company's research and development ("R&D") costs were only $0.95 million and $1.07 million for the years ended June 30, 2025 and 2024, respectively. This stands in stark contrast with Regencell Bioscience Holdings Limited 's own representations that "average [R&D] to marketplace cost for a new medicine is nearly $4 billion, and can sometimes exceed $10 billion." The Company itself has admitted that "our stock price has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of our company."

Notwithstanding the foregoing, Regencell Bioscience Holdings Limited has a market value of approximately $14 billion. As The Wall Street Journal observed in January 2026, "[f]or context, only 20 of the 261 companies in the Nasdaq Biotechnology Index had a greater market value; the index doesn't include Regencell."

Then on October 31, 2025, Regencell Bioscience Holdings Limited disclosed in a filing with the U.S. Securities and Exchange Commission that "following recent volatility in the market for our Ordinary Shares, the Company received correspondence and a subpoena from the United States Department of Justice ('DOJ'), indicating that the DOJ is conducting an investigation into the trading in our Ordinary Shares." Regencell said that "[t]he DOJ has requested the production of documents and communications concerning these and other corporate operational, financial and accounting matters" and that the Company "expect[s] to continue to incur significant legal costs and other expenses in connection with responding to the investigation" and "may be required to pay fines, penalties, damages or settlement costs in excess of our insurance coverage, if any, related to the investigation."

Shares of Regencell Bioscience Holdings Limited (NASDAQ: RGC) declined to $10.33 per share on Novebmer 25, 2025.

The plaintiff claims that between October 28, 2024 and October 31, 2025, the defendants made false and/or misleading statements and/or failed to disclose that Regencell was vulnerable and/or subject to market manipulation, that the resulting volatility in the market for the Company's ordinary shares exposed Regencell's investors to significant financial risk, that all the foregoing subjected Regencell to a heightened risk of regulatory and/or governmental scrutiny and enforcement action, as well as significant legal, monetary, and reputational harm, ad that as a result, Defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of Regencell Bioscience Holdings Limited (NASDAQ: RGC) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.