DOJ Probes Trading in Herbal Medicine Firm That Surged 46,000%

The US Department of Justice is probing market volatility at a Hong-Kong based traditional Chinese medicine company after a stock surge briefly made its value soar 46,000%.

The DOJ sent a subpoena to Regencell Bioscience Holdings Ltd. to turn over documents and communications concerning trading in the company’s shares “and other corporate operational, financial and accounting matters,” according to the company’s financial report filed with the US Securities and Exchange Commission on Friday in Washington.

“We are cooperating with this investigation, but we cannot predict its ultimate resolution,” the filing states. Company representatives didn’t immediately respond to a request ...