I'm not saying what Zippi has done is illegal (aside from the massive dumping we saw just prior to the reverse split), they are probably just barely within the law. I do feel what they have done is sleazy, underhanded and had absolutely no regard for those that had the misfortune of investing in them.
What I would like is that if enough people file a complaint the SEC might step in and put them under a microscope, in particular there financial statements. That's where I think things will get interesting.