Megan Holdings (MGN) Considers Reverse Stock Split Amid Lawsuit

Font: Financial Modeling Prep  • Aug 14, 2026

Megan Holdings Limited (NASDAQ: MGN) Considers Reverse Stock Split Amid Legal Challenges

• Megan Holdings Limited (NASDAQ: MGN) is considering options, potentially including a reverse stock split, to regain compliance with Nasdaq’s minimum bid-price requirement.
• Nasdaq has given the company until November 9, 2026, to restore its share price to at least $1.00 for a minimum of 10 consecutive business days.
• Megan Holdings also faces a securities class-action lawsuit alleging that its shares were affected by a market-manipulation and “pump-and-dump” promotional scheme.

Megan Holdings Limited (NASDAQ: MGN) is a Cayman Islands holding company whose Malaysian operations develop, construct, and maintain aquaculture farms, including shrimp-farming projects.

The company received a Nasdaq notification after its Class A ordinary shares remained below the exchange’s $1.00 minimum bid-price requirement for 30 consecutive business days. Megan Holdings has until November 9, 2026, to regain compliance and is considering available options, which may include a reverse stock split. Megan Holdings is also named in a securities class-action lawsuit covering investors who acquired shares between September 26, 2025, and March 25, 2026. 

The complaint alleges that MGN shares were affected by a coordinated promotional scheme involving people posing as financial advisers on social media. According to the complaint, the stock rose approximately 321% from $1.23 on February 25, 2026, to an intraday high of $5.18 on March 25. It then fell 93.4% in one trading day, declining from a $4.24 closing price to $0.28 on March 26. These allegations have not yet been proven in court.