Futu investors face Aug. 25, 2026 lead plaintiff deadline in securities class action

Investors who purchased or otherwise acquired Futu Holdings Limited securities between May 24, 2023 and May 27, 2026 have until Aug. 25, 2026 to ask the court to appoint them lead plaintiff in a securities class action pending in the U.S. District Court for the Southern District of New York. Kahn Swick & Foti said the case, Tang v. Futu Holdings Limited, et al, 26-cv-05453, alleges Futu and certain executives failed to disclose that the company was not in compliance with China Securities Regulatory Commission requirements because it continued conducting securities, public fund sales and futures business in mainland China without the required licenses or approval. The complaint also alleges Futu was reasonably likely to face regulatory penalties, including disgorgement of ill-gotten gains and other penalties, that its financial results were therefore overstated, and that positive statements about its business, operations and prospects were materially misleading or lacked a reasonable basis. Earlier reporting already tied the lawsuit to China's May 2026 crackdown on what authorities described as illegal cross-border securities activity. Reuters reported on May 22, 2026 that China would punish brokers it accused of illegally moving money to foreign markets and that online brokers including Futu would be penalized for soliciting business in China without an onshore licence. Futu's American Depositary Shares fell $34.10, or 27.5%, to close at $89.76 that day. Futu later said on May 28, 2026, in first-quarter 2026 results, that net income was HK$831.0 million, or US$106.0 million, after giving effect to proposed penalties consisting of confiscation of illegal gains of about RMB470 million and fines of about RMB1.38 billion, for an aggregate amount of about RMB1.85 billion. Futu ADSs fell another $5.31, or 4.8%, to close at $104.91 on May 28.