“The proceedings remain at an early stage,” said Ryde

Singapore-based ride-hailing firm Ryde, listed on the New York Stock Exchange (NYSE), is facing two separate legal cases: a shareholder petition and a class action lawsuit, the Business Times reported.

On Jul 3, Octava Fund, a shareholder of Ryde Group, submitted a petition to the Grand Court of the Cayman Islands, where both it and Ryde Group are incorporated.

The petition calls for Ryde’s 6.9 million shares to be bought out, or for Ryde to be wound up, on grounds of improper governance, breach of duty and other issues.

Separately, a class action lawsuit filed on Sept 10 in the US District Court for the Southern District of New York accuses Ryde of being involved in a pump-and-dump scheme.

It is a practice in which fraudsters artificially inflate the price of a traded financial instrument through false or misleading positive statements before selling off their holdings at the peak.

Ryde responded in a media statement on Sept 18.

On the shareholder petition, the company said:

“The proceedings remain at an early stage, and no findings have been made by the court on the substantive allegations. No official or provisional liquidator has been appointed, the directors remain in control of the company, and the proceedings have not affected the company’s operations or its ability to conduct business in the ordinary course.”

Ryde added that it does not presently believe the proceedings are material to the company.

On the class action lawsuit, the ride-hailing firm said it intends to “engage litigation counsel and actively defend the action.”

In response to queries from The Business Times, it said it had no further comment beyond its Sep 18 response.

“As these matters are subject to ongoing legal proceedings, the company will refrain from commenting further at this time and will make any further disclosures as appropriate in accordance with applicable requirements,” it said.

RydeSend is a 24/7 on-demand, point-to-point express delivery service offered by Ryde./ Image Credit: Ryde

It began as a carpooling app before expanding into ride-hailing and delivery services. In Singapore, it is one of seven full ride-hail operators, alongside the likes of CDG Zig and Grab.

Ryde made its initial public offering on Nasdaq on Mar 4, 2024, listing three million Class A shares at US$4 a piece.

On the other hand, Octava Fund is an investment holding company wholly owned by Octava Offshore Holdings (also incorporated in the Cayman Islands), but managed by Octava Management, a private limited company based in Singapore.

Octava Management describes itself as a holding company that invests in real estate, with a focus on sustainable growth and strategic partnerships.

In its petition, Octava Fund said it has “justifiably lost all trust and confidence that the assets and affairs of the company are being properly managed,” adding that “mutual trust and confidence between the petitioner and the company has irretrievably broken down.”

According to the petition, Ryde was on the brink of insolvency and unable to meet its payroll obligations in 2019.

Ryde founder Terence Zou./ Image Credit: Singapore Global Network

Octava Fund became Ryde’s majority shareholder in Jan 2020 after buying out the company’s then-principal investor, Nomad X. Octava alleges that despite this, it was gradually excluded from management decisions and its voting power eroded over time.

It points to a Feb 2025 memo in which Ryde issued three million Class B shares—which carry 10 times the voting rights of Class A shares—to Zou without Octava’s approval, shifting control to Zou’s favour (58.7%, up from 42.7%) and diluting Octava’s stake to 23%, down from 39.8%.

Octava also alleges mismanagement, citing a US$10 million (S$12.8 million) private placement of Class A shares completed on Oct 7, 2025, which Ryde reportedly failed to notify the NYSE of before trading began, drawing a warning from the exchange.

The firm also pointed to a separate incident in Sept, involving a proposal to award Zou up to 32 million Class B shares if the company met certain revenue, fundraising and other targets.

Under this arrangement, Zou received two million Class B shares—worth roughly US$1 million (S$1.28 million) at the time—for lifting H1 2025 revenue by US$1.1 million (S$1.41 million).

In effect, more than US$0.94 (S$1.20) of every additional dollar earned was recorded as share-based compensation expense, while Ryde’s bottom line improved by just six cents on the dollar.

Class action lawsuit

Image Credit: CMG

The class action lawsuit was filed on Sept 10 in the US District Court for the Southern District of New York. A retail investor, Shari Weiss, brought a claim against Ryde and its leadership, including Zou and then-CFO Lang Chen Fei.

It is filed on behalf of those who bought Ryde securities between Mar 6 and Sept 11, 2024.

The suit alleges Ryde participated in or enabled a pump-and-dump scheme, with people posing as financial advisers on social media and online forums fuelling a “buying frenzy” among retail investors.

Ryde’s share price hit an intraday high of US$22.49 (S$28.76) on Sept 11, 2024, “despite no fundamental changes to the company,” before crashing 75% the next day to US$5.50 (S$7.03).

The founder of financial intelligence firm Hindenburg Research, Nathan Anderson, cited in the complaint, said that the stock showed “all the hallmarks” of a pump-and-dump scheme at the time, noting it had “plummeted 80%in an hour… after weeks of wash-trading and coordinated pumping in chat rooms.”

The suit also claims Ryde failed to disclose the matter to investors, even though unusual trading activity, outsized price swings, and false claims circulating in online investor groups were already public and readily observable—rendering its “business, operations and prospects… materially misleading and/or lacking a reasonable basis.”

Separately, Ryde’s latest financial results showed its Q1 2026 adjusted EBITDA deficit narrowing to S$1 million, from S$1.8 million a year earlier, as revenue rose 38% to S$3.8 million.

Ryde’s share price has since cooled considerably, closing at US$0.68 (S$0.87) on Oct 1—down from its September 2024 peak of US$20.28 (S$25.94).

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Featured Image Credit: Ryde