Futu Holdings Executives Face Securities Class Action
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: PRnewswire
- Executive Accountability: Futu Holdings' CEO Leaf Hua Li and CFO Arthur Yu Chen are accused of signing SEC filings while the company operated without necessary CSRC licenses, highlighting significant executive negligence in compliance matters.
- Massive Penalty Impact: The CSRC proposed a penalty of RMB 1.85 billion (approximately USD 271 million), leading to a 27.5% drop in Futu's stock price on May 22, 2026, resulting in a loss of $34.10 per share, severely undermining investor confidence.
- False Statement Allegations: The lawsuit alleges that Futu made materially false and misleading statements in financial reports from May 24, 2023, to May 27, 2026, failing to disclose that its securities and futures operations in mainland China lacked the required licenses, potentially exacerbating investor losses.
- Legal Consequences and Investor Rights: The court has set August 25, 2026, as the deadline for lead plaintiff applications, allowing investors to assess their losses and participate in the lawsuit, underscoring the importance of legal processes in protecting investor rights.
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Analyst Views on FUTU
Wall Street analysts forecast FUTU stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 99.920
Low
157.85
Averages
222.55
High
300.00
Current: 99.920
Low
157.85
Averages
222.55
High
300.00
About FUTU
Futu Holdings Ltd is an investment holding company engaged in offering digitized brokerage platforms. The Company is involved in the provision of online brokerage services and margin financing services through software and websites. The Company mainly provides investing services through its digital brokerage platform under the name of Futu NiuNiu. The Company’s service offerings include trade executions and margin financings, which allow its clients to trade securities across markets, such as stocks, warrants, options and exchange traded funds (ETFs). In addition, the Company also provides financial information and online community services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Class Action Lawsuit Announced for Futu Holdings
- Class Action Initiation: The Rosen Law Firm has announced a class action lawsuit on behalf of investors who purchased Futu Holdings (NASDAQ: FUTU) securities between May 24, 2023, and May 27, 2026, with a deadline of August 25, 2026, for those wishing to serve as lead plaintiff, highlighting the urgency for affected investors to act.
- No Upfront Costs: Investors joining the class action will not incur any out-of-pocket expenses, as the Rosen Law Firm operates on a contingency fee basis, which alleviates financial pressure on investors and encourages broader participation in the lawsuit.
- Regulatory Compliance Issues: The lawsuit alleges that Futu was not compliant with the China Securities Regulatory Commission's requirements, continuing to conduct business without necessary licenses, which could lead to significant regulatory penalties and impact the company's operational viability.
- Inflated Financial Results: The claim indicates that Futu's financial results were overstated, resulting in investor losses once the true information became public, suggesting a critical need for improved transparency and compliance within the company to restore investor confidence.
See More
Futu Holdings Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action against Futu Holdings and its executives for securities fraud, alleging unauthorized securities operations in China that led to a significant stock drop, highlighting major compliance risks for the company.
- Stock Price Plunge: On May 22, 2026, Futu's stock plummeted by 27.5% from $123.86 to $89.76 per share due to allegations of soliciting business without a license, indicating severe market concerns regarding its compliance capabilities.
- Financial Penalties Impact: Futu faces penalties totaling RMB 1.85 billion (approximately $271 million) for operating without regulatory approval in China, which not only caused further stock declines but may also hinder its future business expansion and investor confidence.
- Investor Rights: Investors are encouraged to contact the law firm by August 25, 2026, to seek legal recourse, indicating that the legal risks faced by the company could have long-term implications for shareholder rights.
See More
Futu Holdings and Hub Group Class Action Reminder
- Futu Holdings Lawsuit Overview: Futu Holdings (NASDAQ:FUTU) faces a class action lawsuit for the period from May 24, 2023, to May 27, 2026, alleging non-compliance with CSRC regulations, which could lead to regulatory penalties and misrepresentation of financial results, potentially harming shareholders.
- Hub Group Financial Issues: Hub Group (NASDAQ:HUBG) is implicated in a class action lawsuit for the period from April 28, 2023, to May 11, 2026, with allegations of significant misstatements in financial statements due to premature transaction recognition and understated transportation costs, undermining investor confidence in the company's prospects.
- Legal Consultation Reminder: Investors who suffered losses during the specified periods are encouraged to contact The Law Offices of Frank R. Cruz to understand their legal rights, with deadlines for lead plaintiff motions set for August 25 and August 28, 2026, respectively, ensuring timely participation in the lawsuits.
- Class Action Participation Guidance: Investors do not need to take immediate action to be part of these class actions; they may retain counsel of their choice or choose to remain absent members, ensuring their rights are protected without immediate involvement.
See More
Futu Holdings Faces Class Action Lawsuit
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC, a prominent investor-rights law firm, has filed a class action lawsuit against Futu Holdings and certain officers, seeking damages for investors who purchased Futu securities between May 24, 2023, and May 27, 2026, indicating strong investor response to potential violations.
- Legal Basis: The complaint alleges that during the class period, defendants made materially false and misleading statements and failed to disclose critical information, which may have led to investor losses, reflecting market concerns over the company's transparency and compliance.
- Investor Participation Opportunity: Affected investors are encouraged to apply to be lead plaintiffs by August 25, 2026, suggesting that the case may attract significant attention from investors, further impacting Futu's market reputation.
- Law Firm Background: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that has recovered hundreds of millions for investors, emphasizing its expertise and successful track record in securities fraud class actions, which may bolster investor confidence in the case.
See More
Futu Holdings Faces Class Action for Securities Fraud
- Class Action Filed: Bronstein, Gewirtz & Grossman, LLC has initiated a class action lawsuit against Futu Holdings and certain officers, aiming to recover damages for investors who purchased Futu securities between May 24, 2023, and May 27, 2026, highlighting serious concerns over the company's compliance and financial transparency.
- Regulatory Violations Alleged: The complaint alleges that Futu failed to comply with the China Securities Regulatory Commission's requirements by continuing to conduct securities, public fund, and futures businesses in mainland China without the necessary licenses or approvals, which could lead to regulatory penalties and further damage to its market reputation.
- Inflated Financial Results: As a result of these violations, Futu's financial results are claimed to be overstated, leading to misleading positive statements about the company's business, operations, and prospects, which may further undermine investor confidence.
- Investor Rights Protection: The law firm offers legal services to Futu investors on a contingency fee basis, meaning they will only charge fees if they successfully recover losses, demonstrating a commitment to protecting investor rights and encouraging affected investors to apply as lead plaintiffs by August 25, 2026.
See More
SEC Investigates Insider Trading Claims of $100M Profits
- Investigation Launched: The SEC is investigating claims by Susquehanna International Group regarding insider trading, alleging that unidentified traders made $100 million in profits from options bets before Chinese authorities cracked down on cross-border brokerages, highlighting the urgency of market regulation.
- Lawsuit Insights: In a lawsuit filed on Monday, Susquehanna reported losses exceeding $70 million as a counterparty to most of the alleged insider trades, indicating that the high-risk, high-reward nature of these options could only be plausibly attributed to insider trading, reflecting market opacity.
- Account Freezing: A federal judge has granted Susquehanna's request to freeze accounts at Interactive Brokers, Futu Holdings, and Up Fintech Holdings, which were allegedly used for insider trading, demonstrating regulators' commitment to addressing market manipulation.
- Market Reactions: While Interactive Brokers' stock rose 0.6% in Thursday morning trading, shares of Futu and Up Fintech fell by 0.7%, indicating investor uncertainty regarding the future of these companies and the volatility of market sentiment.
See More
Class Action Lawsuit Announced for Futu Holdings
- Class Action Initiation: The Rosen Law Firm has announced a class action lawsuit on behalf of investors who purchased Futu Holdings (NASDAQ: FUTU) securities between May 24, 2023, and May 27, 2026, with a deadline of August 25, 2026, for those wishing to serve as lead plaintiff, highlighting the urgency for affected investors to act.
- No Upfront Costs: Investors joining the class action will not incur any out-of-pocket expenses, as the Rosen Law Firm operates on a contingency fee basis, which alleviates financial pressure on investors and encourages broader participation in the lawsuit.
- Regulatory Compliance Issues: The lawsuit alleges that Futu was not compliant with the China Securities Regulatory Commission's requirements, continuing to conduct business without necessary licenses, which could lead to significant regulatory penalties and impact the company's operational viability.
- Inflated Financial Results: The claim indicates that Futu's financial results were overstated, resulting in investor losses once the true information became public, suggesting a critical need for improved transparency and compliance within the company to restore investor confidence.
See More
Futu Holdings Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action against Futu Holdings and its executives for securities fraud, alleging unauthorized securities operations in China that led to a significant stock drop, highlighting major compliance risks for the company.
- Stock Price Plunge: On May 22, 2026, Futu's stock plummeted by 27.5% from $123.86 to $89.76 per share due to allegations of soliciting business without a license, indicating severe market concerns regarding its compliance capabilities.
- Financial Penalties Impact: Futu faces penalties totaling RMB 1.85 billion (approximately $271 million) for operating without regulatory approval in China, which not only caused further stock declines but may also hinder its future business expansion and investor confidence.
- Investor Rights: Investors are encouraged to contact the law firm by August 25, 2026, to seek legal recourse, indicating that the legal risks faced by the company could have long-term implications for shareholder rights.
See More
Futu Holdings and Hub Group Class Action Reminder
- Futu Holdings Lawsuit Overview: Futu Holdings (NASDAQ:FUTU) faces a class action lawsuit for the period from May 24, 2023, to May 27, 2026, alleging non-compliance with CSRC regulations, which could lead to regulatory penalties and misrepresentation of financial results, potentially harming shareholders.
- Hub Group Financial Issues: Hub Group (NASDAQ:HUBG) is implicated in a class action lawsuit for the period from April 28, 2023, to May 11, 2026, with allegations of significant misstatements in financial statements due to premature transaction recognition and understated transportation costs, undermining investor confidence in the company's prospects.
- Legal Consultation Reminder: Investors who suffered losses during the specified periods are encouraged to contact The Law Offices of Frank R. Cruz to understand their legal rights, with deadlines for lead plaintiff motions set for August 25 and August 28, 2026, respectively, ensuring timely participation in the lawsuits.
- Class Action Participation Guidance: Investors do not need to take immediate action to be part of these class actions; they may retain counsel of their choice or choose to remain absent members, ensuring their rights are protected without immediate involvement.
See More
Futu Holdings Faces Class Action Lawsuit
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC, a prominent investor-rights law firm, has filed a class action lawsuit against Futu Holdings and certain officers, seeking damages for investors who purchased Futu securities between May 24, 2023, and May 27, 2026, indicating strong investor response to potential violations.
- Legal Basis: The complaint alleges that during the class period, defendants made materially false and misleading statements and failed to disclose critical information, which may have led to investor losses, reflecting market concerns over the company's transparency and compliance.
- Investor Participation Opportunity: Affected investors are encouraged to apply to be lead plaintiffs by August 25, 2026, suggesting that the case may attract significant attention from investors, further impacting Futu's market reputation.
- Law Firm Background: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that has recovered hundreds of millions for investors, emphasizing its expertise and successful track record in securities fraud class actions, which may bolster investor confidence in the case.
See More
Futu Holdings Faces Class Action for Securities Fraud
- Class Action Filed: Bronstein, Gewirtz & Grossman, LLC has initiated a class action lawsuit against Futu Holdings and certain officers, aiming to recover damages for investors who purchased Futu securities between May 24, 2023, and May 27, 2026, highlighting serious concerns over the company's compliance and financial transparency.
- Regulatory Violations Alleged: The complaint alleges that Futu failed to comply with the China Securities Regulatory Commission's requirements by continuing to conduct securities, public fund, and futures businesses in mainland China without the necessary licenses or approvals, which could lead to regulatory penalties and further damage to its market reputation.
- Inflated Financial Results: As a result of these violations, Futu's financial results are claimed to be overstated, leading to misleading positive statements about the company's business, operations, and prospects, which may further undermine investor confidence.
- Investor Rights Protection: The law firm offers legal services to Futu investors on a contingency fee basis, meaning they will only charge fees if they successfully recover losses, demonstrating a commitment to protecting investor rights and encouraging affected investors to apply as lead plaintiffs by August 25, 2026.
See More
SEC Investigates Insider Trading Claims of $100M Profits
- Investigation Launched: The SEC is investigating claims by Susquehanna International Group regarding insider trading, alleging that unidentified traders made $100 million in profits from options bets before Chinese authorities cracked down on cross-border brokerages, highlighting the urgency of market regulation.
- Lawsuit Insights: In a lawsuit filed on Monday, Susquehanna reported losses exceeding $70 million as a counterparty to most of the alleged insider trades, indicating that the high-risk, high-reward nature of these options could only be plausibly attributed to insider trading, reflecting market opacity.
- Account Freezing: A federal judge has granted Susquehanna's request to freeze accounts at Interactive Brokers, Futu Holdings, and Up Fintech Holdings, which were allegedly used for insider trading, demonstrating regulators' commitment to addressing market manipulation.
- Market Reactions: While Interactive Brokers' stock rose 0.6% in Thursday morning trading, shares of Futu and Up Fintech fell by 0.7%, indicating investor uncertainty regarding the future of these companies and the volatility of market sentiment.
See More
