Futu Holdings Limited (NASDAQ: FUTU)

This lawsuit is for anyone who acquired securities in Futu Holdings Limited (NASDAQ: FUTU) from April 27, 2020 through May 16, 2023.

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 was not engaged in providing brokerage services in China without a license when the Company knew that it was engaged in providing brokerage services.

On October 28, 2021, The Wall Street Journal published an article stating that “[a] senior official at China’s central bank said cross-border online brokerages operating in mainland China were acting illegally,” and specified that Futu “[directs] prospective clients in mainland China to open trading accounts in Hong Kong.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on December 17, 2021, after market hours, Reuters reported that “Chinese officials are planning to ban online brokerages such as Futu [. . .] from offering offshore trading services to mainland clients, the latest development in a broad regulatory crackdown that has roiled a wide range of sectors over the past year.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on December 30, 2022, The Wall Street Journal published an article stating that the China Securities Regulatory Commission had determined that Futu’s “act of offering offshore securities-trading services to clients in mainland China doesn’t comply with the country’s laws and regulations.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on May 16, 2023, Reuters released an article revealing that Futu would be removing its app in mainland China. On this news, the price of the Company’s stock again 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 April 27, 2020 through May 16, 2023 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.