Overview

A class action lawsuit has been filed against Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU), and certain of the Company’s senior officers, alleging violations of the federal securities laws. The Futu lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Futu securities between May 24, 2023, and May 27, 2026, inclusive (the “Class Period”). Investors have until August 25, 2026, to seek appointment as lead plaintiff of the Futu class action lawsuit.

Futu provides digitalized securities brokerage and wealth management product distribution services in Hong Kong and internationally. According to the complaint, on December 30, 2022, the China Securities Regulatory Commission (“CSRC”) stated that Futu had conducted cross-border securities business with domestic investors in mainland China without regulatory consent. As a result, Futu was banned from opening new accounts for mainland Chinese investors and soliciting new business from mainland investors.

The complaint alleges that, throughout the Class Period, Defendants touted Futu’s operational and financial results, including the Company’s funded accounts, brokerage accounts, users, client assets, trading volume, revenues, gross profit, net income, and non-GAAP adjusted net income. The complaint further alleges that Futu’s annual reports described the Company’s efforts to comply with CSRC requirements, including the removal of the Futubull app from app stores in mainland China, while warning that additional regulatory actions or penalties could adversely affect the Company’s operations and financial results.

According to the complaint, these statements were materially false and misleading because Defendants failed to disclose that Futu was not in compliance with CSRC requirements. Plaintiff alleges that Futu continued to conduct securities business, public fund sales business, and futures business in mainland China without obtaining the required licenses or approvals. As a result, Plaintiff alleges that Futu was reasonably likely to face regulatory penalties, including disgorgement of illegal gains and other penalties, and that the Company’s financial results were overstated.

The truth began to emerge on May 22, 2026, when Reuters reported that the CSRC and other Chinese government agencies had launched a crackdown on brokers accused of illegally moving money to foreign markets, including overseas firms and local partners operating without approval.

That same day, Futu announced that it had received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the CSRC and its Shenzhen bureau. Futu disclosed that the CSRC stated that certain Futu entities in mainland China and Hong Kong, without obtaining the required licenses or approvals, had conducted securities business, public fund sales business, and futures business in mainland China. Futu further disclosed that the CSRC proposed to order the relevant entities to rectify or cease those activities, confiscate illegal gains, and impose fines, with a total proposed penalty of approximately RMB1.85 billion, or approximately $271 million.

On this news, Futu’s stock price fell $34.10 per share, or approximately 27.5%, closing at $89.76 per share.

Then, on May 28, 2026, Futu announced financial results for the first quarter of 2026.  Futu reported net income of HK$831.0 million ($106.0 million) after giving effect to the proposed penalties comprised of: (i) confiscation of illegal gains of approximately RMB470 million [approximately $69.21 million], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion] in an aggregate amount of approximately RMB1.85 billion.

On this news, Futu’s stock price fell an additional $5.31 per share, or nearly 5%, closing at $104.91 per share.

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If you purchased or otherwise acquired Futu securities between May 24, 2023, and May 27, 2026, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Futu class action lawsuit is August 25, 2026.