Faruqi & Faruqi says it is investigating Futu securities claims before Aug. 25 deadline
Faruqi & Faruqi, LLP said it is investigating a federal securities class action against Futu Holdings Limited and said Aug. 25, 2026 is the deadline to seek lead-plaintiff status.
Faruqi & Faruqi, LLP said it is investigating a federal securities class action involving Futu Holdings Limited and said Aug. 25, 2026 is the deadline to seek appointment as lead plaintiff.
The complaint concerns allegations about Futu’s disclosures and business conduct. The filing says investors who bought or otherwise acquired Futu securities during the class period may be eligible to participate if they suffered losses.
According to the firm’s notice, the class period runs from May 24, 2023, through May 27, 2026, inclusive. The notice says the complaint alleges that Futu and certain executives made false or misleading statements or omitted key information, including claims that the company was not compliant with China Securities Regulatory Commission requirements.
The notice says those allegations center on securities business, public fund sales business and futures business in mainland China that allegedly lacked required licenses or approvals. It also says the complaint alleges Futu faced likely regulatory penalties, that its financial results were overstated and that earlier positive statements about its business, operations and prospects lacked a reasonable basis.
The PR Newswire notice describes two market events cited in the complaint. On May 22, 2026, Futu allegedly disclosed receiving a CSRC notification letter saying certain Futu entities in mainland China and Hong Kong conducted those businesses without requisite licenses or approval. The notice says the CSRC proposed rectification or cessation, confiscation of illegal gains and fines totaling about RMB1.85 billion, including a personal fine of RMB1.25 million on founder and CEO Li Hua. The notice says the stock fell more than 27% on that news, according to the complaint.
On May 28, 2026, Futu allegedly reported first-quarter 2026 results that included proposed penalties of about RMB470 million in confiscated gains and about RMB1.38 billion in fines. The notice says the stock declined nearly 5% after that update, according to the complaint.
The notice also explains the role of a lead plaintiff in securities cases. It says the lead plaintiff is typically the investor with the largest financial interest who is adequate and typical and who directs and oversees the litigation on behalf of the class. Investors may move the court to serve in that role through counsel of their choice or do nothing and remain absent class members, the notice says.
Faruqi & Faruqi said it has offices in New York, Pennsylvania, California and Georgia. The firm said it was founded in 1995 and has recovered hundreds of millions of dollars for investors. The notice listed contact numbers for partner Josh Wilson and directed investors to the firm’s FUTU webpage.
The Aug. 25 deadline is for investors seeking lead-plaintiff status. The notice says the ability to share in any recovery is not affected by whether an investor serves as lead plaintiff.
Sources
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