Futu Holdings Limited (NASDAQ: FUTU)

This lawsuit is for anyone who acquired securities in Futu Holdings Limited (NASDAQ: FUTU) from May 24, 2023 through May 27, 2026.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company complied with all applicable laws but then by failing to comply with Chinese securities law.

On May 22, 2026, Reuters published an article reporting that the China Securities Regulatory Commission, along with seven other government agencies including the central bank, had launched a crackdown aimed at “​brokers it accused of illegally moving money to foreign markets” including “overseas firms and their local partners operating without ​approval.”  The article reported “online brokers Tiger, Futu and Longbridge would be penalised for soliciting ‌business in China without an onshore licence, the securities regulator said.” On the same date, pre-market, Futu issued a press release disclosing that it had received a Notification Letter from the CSRC. The Company reported the letter states “certain Futu entities in mainland China and Hong Kong … without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China.” The letter further states the CSRC “proposes to order the Related Companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB1.85 billion (approximately USD271 million).” Further, the regulatory authority “proposes to impose a personal fine of RMB1.25 million (approximately USD 183,575) on Mr. LI Hua, the founder and CEO of the Company.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Finally, on May 28, 2026,  before the market opened, Futu issued a press release reporting financial results for the first quarter 2026, including net income of HK$831.0 million (US$106.0 million) after giving effect to the proposed penalties comprised of: “(i) confiscation of illegal gains of approximately RMB470 million [approximately $69.21 million USD], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion USD] in an aggregate amount of approximately RMB1.85 billion.” The press release reported this adjustment under the Company’s financial statements as “Others, net” in its statements of comprehensive income for the applicable period. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Futu Holdings Limited (NASDAQ: FUTU) from May 24, 2023 through May 27, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.