I'm not a lawyer, of course, but I've never seen anything like that happen.
Nothing the SEC could do would help: by law, it can only suspend trading for 10 days.
I'm not sure about FINRA. But my guess is that they, like most organizations, don't like to get involved in litigation unnecessarily. They aren't a government agency, which might make them even more reluctant.
Longside may be thinking that FINRA's empowered to impose a U1 halt on the stock. U1s are a kind of catch-all, often used for "pending news", good or bad. But they're generally not applied to OTC issuers, but for exchange-listed stocks. When FINRA issues them, it's for foreign issuers that have been halted at their primary trading venue for one reason or another.
I don't think I've ever seen FINRA impose a U1 halt on a "normal" domestic issuer.
