Fitness Champs Holdings Ltd. (NASDAQ:FCHL) shares are trending on Wednesday.
FCHL shares jumped 44.36% to $1.92 in after-hours trading on Tuesday, according to Benzinga Pro data.
The surge follows a sharp reversal from the regular session, where shares fell 16.35% to close at $1.33, according to Benzinga Pro.
The Alleged Scheme
The after-hours rally comes despite a class action lawsuit filed by New York-based law firm Pomerantz LLP. The lawsuit alleges that FCHL was used in a coordinated pump-and-dump scheme, a form of securities fraud in which a stock's price is artificially inflated through false or misleading statements. The alleged perpetrators then sell at the peak and exit their positions, leaving retail investors with steep losses.
According to the complaint, impersonators posing as financial advisors drove FCHL shares to $7.20 on Sep. 19, 2025, via online forums, chat groups, and social media, with no fundamental news to justify the price spike. Four days later, on Sep. 23, shares collapsed 84.6%, closing at $1.07.
Investors who purchased FCHL shares during the class period have until Jun. 16, to seek Lead Plaintiff status.
Trading Metrics, Technical Analysis
The Relative Strength Index (RSI) of Fitness Champs stands at 28.82.
With a market capitalization of $1.66 million, the Singapore-based sports education provider has a 52-week range of $1.27 to $3,438.
Over the past 12 months, the small-cap stock has dropped 99.93%.
Currently, FCHL is trading very close to its annual low.
FCHL's sharp decline and weak positioning suggest continued pressure, indicating higher risk and the need for clear signs of recovery before investor confidence can return.
The stock has a short interest of 97.8% of its float, an exceptionally high level that indicates strong bearish sentiment and increases the possibility of a short squeeze.
Benzinga’s Edge Stock Rankings indicate that FCHL has a negative price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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