The lawsuit covers investors who bought Futu securities between May 24, 2023 and May 27, 2026 after disclosures tied to proposed CSRC penalties and subsequent stock declines.
Berger Montague PC said it has filed a class action lawsuit against Futu Holdings Limited on behalf of investors who purchased or acquired the company's securities from May 24, 2023 through May 27, 2026. Investors seeking appointment as lead plaintiff must move by Aug. 25, 2026. The case follows a May 22, 2026 Reuters report that the CSRC (China securities regulator) and seven other government agencies had launched a crackdown on brokers allegedly operating without approval, after which Futu disclosed a Notification Letter proposing about RMB1.85 billion, or about $271 million, in confiscation of alleged illegal gains and fines, along with a proposed personal fine against founder and CEO Li Hua. Futu shares then fell $34.10, or 27.5%. On May 28, 2026, the company reported quarterly results that reflected the proposed regulatory penalties, including about RMB470 million in confiscation of alleged illegal gains and about RMB1.38 billion in fines recorded as "Others, net," and the stock fell a further $5.31, or 4.8%.