QIAOYUN XIE OVERSAW OST FINANCIALS DURING $950M PUMP-AND-DUMP — LEVI & KORSINSKY, LLP
Executive Accountability: Qiaoyun Xie Named as Defendant in Securities Action Alleging She Certified Financials While Fraudulent Scheme Unfolded
NEW YORK, March 30, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors that Qiaoyun Xie, Chief Financial Officer of Ostin Technology Group Co., Ltd. (Nasdaq: OST), is named as a defendant in a securities class action filed in the United States District Court for the Southern District of New York. The lawsuit asserts that Ms. Xie knew or recklessly disregarded that two securities offerings were non-bona fide transactions designed to facilitate a fraudulent pump-and-dump scheme that destroyed over $950 million in shareholder value. Find out if you are eligible for recovery in this action or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Investors who purchased OST ordinary shares between May 11, 2025, and June 26, 2025, and suffered losses may be entitled to compensation. The stock collapsed 94.1% on June 26, 2025, falling from $9.40 to $0.55 per share.
Qiaoyun Xie's Role During the Class Period
Ms. Xie has served as OST's Chief Financial Officer since June 2020. In that capacity, she bore direct responsibility for the company's financial reporting, investment activities, and financial policies. The complaint identifies her as a signatory on OST's annual reports on Form 20-F filed with the SEC, including certifications pursuant to the Sarbanes-Oxley Act of 2002 attesting to the accuracy of OST's financial statements.
What Qiaoyun Xie Allegedly Oversaw
As CFO during the Class Period, the action contends Ms. Xie had access to material non-public information regarding OST's securities offerings, share issuances, and the nearly 300% dilution created by the Registered Direct Offering and Warrant Exchange Agreement. The complaint charges that she knew or recklessly disregarded that these transactions placed approximately 80 million shares in the hands of co-conspirators at an effective cost of $0.0625 per share, while OST's stock was trading at multiples of that price.
- Ms. Xie signed Sarbanes-Oxley certifications under Sections 302 and 906 attesting to the accuracy of OST's financial disclosures
- As CFO, she was responsible for financial reporting during a period when 75% of outstanding shares were transferred to at least fifteen co-conspirators
- The complaint alleges she had access to information about the RDO and Warrant Exchange Agreement that were central to the fraudulent scheme
- Her certifications covered periods when OST's market capitalization surged from $22 million to over $1 billion despite declining revenues and mounting losses
Qiaoyun Xie's Certifications and Liability
The Sarbanes-Oxley certifications Ms. Xie signed carried personal legal consequences. By certifying that OST's filings did not contain untrue statements of material fact or omit material facts necessary to make the statements not misleading, she assumed individual responsibility for the completeness of the company's disclosures. The lawsuit maintains that these certifications were false given the alleged fraudulent nature of the securities offerings.
"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When a CFO certifies financial statements during a period of alleged manipulation of this magnitude, serious questions arise about what she knew and when she knew it." -- Joseph E. Levi, Esq.
Section 20(a) Context for Qiaoyun Xie
The complaint names Ms. Xie as a controlling person under Section 20(a) of the Securities Exchange Act of 1934. As CFO, she possessed the power and authority to control the content of OST's financial disclosures. The action asserts she is jointly and severally liable for the damages caused by OST's alleged violations of the federal securities laws.
LEAD PLAINTIFF DEADLINE: April 17, 2026
Speak with an attorney about CFO liability claims in the OST action or call Joseph E. Levi, Esq. at (212) 363-7500.
Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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