Qiaoyun Xie Named as Defendant in Securities Class Action Alleging Certification of OST Financials in a $950 Million Pump-and-Dump

Levi & Korsinsky, LLP has notified investors that Qiaoyun Xie, Chief Financial Officer of Ostin Technology Group Co., Ltd. (Nasdaq: OST), has been 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 alleges that Ms. Xie knew or recklessly disregarded that two securities offerings were non-bona fide transactions intended to facilitate a fraudulent pump-and-dump scheme, which the complaint says destroyed more than $950 million in shareholder value.

Investors who purchased OST ordinary shares between May 11, 2025, and June 26, 2025, and suffered losses may be eligible for compensation. The stock fell 94.1% on June 26, 2025, dropping from $9.40 to $0.55 per share.

Ms. Xie’s role during the class period

Ms. Xie has served as OST’s Chief Financial Officer since June 2020. The complaint states that, in this role, she had direct responsibility for the company’s financial reporting, investment activities, and financial policies. It also identifies her as a signatory on OST’s annual reports on Form 20-F filed with the SEC, including certifications made under the Sarbanes-Oxley Act of 2002.

Allegations regarding the securities offerings

The action contends that during the class period, Ms. Xie had access to material non-public information related to OST’s securities offerings and share issuances, including what the complaint describes as nearly 300% dilution tied to the Registered Direct Offering and Warrant Exchange Agreement.

• The complaint alleges the 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.
• It states that Ms. Xie signed Sarbanes-Oxley certifications under Sections 302 and 906 attesting to the accuracy of OST’s financial disclosures.
• It alleges that during a period when 75% of outstanding shares were transferred to at least fifteen co-conspirators, she was responsible for financial reporting.
• The complaint asserts that her certifications covered periods when OST’s market capitalization rose from $22 million to over $1 billion despite declining revenues and mounting losses.

Certifications and alleged personal liability

The lawsuit argues that 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 statements not misleading, the complaint maintains she assumed individual responsibility for the completeness of the company’s disclosures. It further alleges the certifications were false in light of 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) allegations

The complaint also names Ms. Xie as a controlling person under Section 20(a) of the Securities Exchange Act of 1934. It alleges that, as CFO, she had the power and authority to control the content of OST’s financial disclosures and that she is jointly and severally liable for damages tied to OST’s alleged violations of federal securities laws.

Lead plaintiff deadline

The lead plaintiff deadline is April 17, 2026.

Levi & Korsinsky, LLP is listing contact information for Joseph E. Levi, Esq. and Ed Korsinsky, Esq. regarding the OST action.