A proposed class action alleges Futu conducted regulated businesses in mainland China without required approvals, exposing it to penalties and overstating financial results during a May 2023 to May 2026 period.
A proposed securities class action against Futu Holdings Limited covers investors who purchased securities between May 24, 2023 and May 27, 2026, with an August 25, 2026 deadline for investors seeking appointment as lead plaintiff. The lawsuit alleges Futu was not in compliance with China Securities Regulatory Commission requirements because it continued to conduct securities business, public fund sales business and futures business in mainland China without the necessary licenses or approval. The complaint further alleges that Futu was therefore reasonably likely to face regulatory penalties, including disgorgement of ill-gotten gains and other sanctions, and that its financial results were consequently overstated. Based on those allegations, the suit contends that the company’s statements about its business, operations and prospects during the class period were materially misleading, and that investors suffered damages when those issues entered the market.