Futu Holdings Limited (NASDAQ: FUTU) Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Futu Holdings Limited (“Futu”) (NASDAQ: FUTU) securities between May 24, 2023, and May 27, 2026, inclusive (the “Class Period”).

On May 22, 2026, before the market opened, Reuters published an article reporting that the China Securities Regulatory Commission (“CSRC”), 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.” Specifically, the article reported “online brokers Tiger, Futu and Longbridge would be penalised for soliciting business in China without an onshore license, the securities regulator said.”

That same day, pre-market, Futu issued a press release disclosing that it had received a notification letter from the CSRC stating that “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”, and that 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, Futu’s stock price fell $34.10 per share, or 27.5%, to close at $89.76 per share on May 22, 2026.

Then, on May 28, 2026, before the market opened, Futu issued a press release reporting its financial results for the first quarter of 2026, including 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.” On this news, Futu’s stock price fell $5.31 per share, or 4.8%, to close at $104.91 per share on May 28, 2026.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) Futu was not in compliance with the requirements of the CSRC, particularly because the company continued to conduct securities business, public fund sales business, and futures business in mainland China without obtaining the requisite licenses or approval; (2) as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (3) consequently, Futu’s financial results were overstated; and (4) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Current Status of Case:
On August 25, 2026, Motions to Appoint Lead Plaintiff and Lead Counsel were filed. The Motions are pending decision before the Court. This action is ongoing.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.