Overview
- Rich Sparkle disclosed an all-stock purchase of Lame’s Step Distinctive worth about $975 million and issued a press release saying the deal had closed, positioning Lame as a controlling shareholder and touting an AI “Digital Twin.”
- The stock jumped more than 650% to $180.64 before sliding to as low as $41, a swing that created multibillion-dollar paper values that analysts say do not reflect realizable wealth given the thin public float.
- Securities attorneys Brenda Hamilton and Laura Posner called the pattern a red flag consistent with pump-and-dump behavior, and short seller Jim Chanos likened it to a Chinese stock promotion.
- Forbes noted Rich Sparkle has not filed an SEC form confirming closing after announcing it, a gap that legal experts say raises questions about timing and compliance.
- The company listed on Nasdaq in July in a small offering and reported under $6 million in 2024 revenue, and Lame acknowledged the deal days later with an Instagram post expressing excitement to be a shareholder.