Partner Reed Kathrein Scrutinizes Allegations of Illicit Enrichment and Collapse of Financial Reporting Controls Following $1.5 Billion Offering

National shareholder rights law firm Hagens Berman has opened an investigation into ALT5 Sigma Corporation (NASDAQ: ALTS) following a cascade of regulatory and management failures that led to the company’s stock cratering nearly 80%.

The investigation focuses on whether ALT5 misled investors about the stability and reliability of its financial reporting and internal controls—specifically in the context of its $1.5 billion registered offering in mid-August. Just two weeks after this capital raise, the company began disclosing a series of catastrophic events that ultimately resulted in the firing of the CEO and CFO, the resignation of the auditor, and Nasdaq non-compliance.

“The sequence of events is highly alarming: a massive capital raise immediately followed by the disclosure of a money laundering judgment against a subsidiary, a management purge, and the auditor walking away,” said Reed Kathrein, the Hagens Berman partner leading the investigation. “We are focused on the integrity of the company’s financial records and whether the C-Suite deliberately concealed the severity of these regulatory and control issues. The firm urges investors in ALT5 who suffered significant losses to contact the firm now.”

ALT5 Sigma (ALTS) Investigation:

The investigation focuses on the propriety of ALT5’s repeated assurances that its financial reports are prepared in conformity with generally accepted accounting principles (“GAAP”).

By August 29, 2025, just weeks after closing a $1.5 billion offering, ALT5 revealed that “on May 7, 2025, the Intermediate Court of Nyarugenge, Rwanda, rendered a judgment finding ALT5 Sigma Canada Inc., a subsidiary of the Company, and its former principal, Mr. Andre Beauchesne, criminally liable for offenses including illicit enrichment and money laundering[.]”

In addition, ALT5 said that it was reviewing “potential misstatements or omissions in the financial statements of the Company and omissions of material information by certain members of management and personnel of the Company.”

Then, on October 22, 2025, the company announced that it suspended CEO Peter Tassiopoulos and CFO Jonathan Hugh assumed Tassiopoulos’ duties.

Subsequently, on November 12, 2025, ALT5 disclosed that it would not timely file its quarterly report as a result of the ongoing review of the matters disclosed in August and delays related to the timeliness and responsiveness of its outside auditor.

Hugh’s tenure was short-lived. On November 26, 2025, ALT5 announced that it fired Hugh effective November 21. The company also said its Audit Committee Chair, who joined the board in July, resigned from the board and all committees he served on.

Finally, on November 28, 2025, ALT5 disclosed that its outside auditor resigned the same day the company fired CFO Hugh.

Next Steps: Contact Partner Reed Kathrein Today

Hagens Berman is one of the nation’s top plaintiff litigation firms, specializing in corporate accountability.

Mr. Kathrein is actively advising investors who purchased ALTS shares and suffered substantial losses due to the company’s alleged financial reporting failures and the resulting stock crash.

We urge investors to contact the firm immediately as this is an active investigation.

TO SUBMIT YOUR ALT5 (ALTS) INVESTMENT LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:

• Submit Your ALT5 Losses
• Contact: Reed Kathrein at 844-916-0895 or email ALTS@hbsslaw.com

For information on the investigation, visit: https://www.hbsslaw.com/cases/alt5-sigma-corporation-alts-investigation

Whistleblowers: Persons with non-public information regarding ALT5 should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ALTS@hbsslaw.com.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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