Ryde Group faces US fraud lawsuit, Cayman Islands shareholder petition
Singapore-based ride-hailing firm Ryde Group, listed on the New York Stock Exchange, is defending a US class action alleging a pump-and-dump scheme and a Cayman Islands shareholder petition for a buyout of 6.9 million shares.
US Class Action and Cayman Islands Petition
Singapore-based ride-hailing company Ryde Group, traded on the New York Stock Exchange (NYSE), is currently addressing two separate legal challenges. On 10 September 2026, a class action lawsuit was initiated in the Southern District of New York, accusing Ryde of involvement in a “pump-and-dump” scheme to manipulate its share price.
Concurrently, Octava Fund, a shareholder, lodged a petition with the Grand Court of the Cayman Islands on 3 July 2026. This petition demands that Ryde acquire Octava's 6.9 million shares or face winding up, citing concerns over improper governance and breach of duty.
Ryde's Defence and Octava Fund's Allegations
Ryde responded on 18 September 2026, stating its intention to "actively defend" the US class action. Regarding the Cayman Islands petition, the company indicated the proceedings are at an early stage, with no court findings yet. It added that no liquidator has been appointed, directors retain control, and operations remain unaffected.
Octava Fund, managed from Singapore, became Ryde's majority shareholder in January 2020 after the company faced near-insolvency in 2019. The fund asserts that its trust in Ryde's management has "irretrievably broken down" due to alleged exclusion from decisions and a reduction in its voting power.
Share Issuance and Regulatory Warning
The shareholder petition details specific instances of alleged mismanagement. In February 2025, Ryde reportedly issued 3 million Class B shares to its CEO, Terence Zou, without Octava's approval. These Class B shares carry ten times the voting rights of Class A shares.
This action significantly altered voting control, increasing Zou's stake to 58.7% from 42.7%, while Octava's fell from 39.8% to 23%. Additionally, on 7 October 2025, Ryde completed a private offering of 33.3 million Class A shares at US$0.30 each, generating approximately US$10 million. The company received a warning from the NYSE for failing to notify the exchange before trading commenced.
These legal challenges could introduce significant volatility for Ryde Group's shares on the NYSE, potentially affecting its future capital-raising efforts. For investors assessing Singapore-based technology companies seeking international listings, this case underscores the necessity of sound corporate governance and transparent shareholder communication.
This is particularly crucial when navigating intricate ownership structures and diverse regulatory environments across different jurisdictions. The outcomes of both the US class action and the Cayman Islands petition will be closely watched for their potential to influence standards of shareholder rights and market integrity for other Asian firms listed abroad.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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