Lawsuit Alert: Investors who lost money with Futu Holdings Limited (NASDAQ: FUTU) should contact the Shareholders Foundation

An investor, who purchased shares of Futu Holdings Limited (NASDAQ: FUTU), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Futu Holdings Limited in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Futu Holdings Limited (NASDAQ: FUTU) have certain options and for certain investors are short and strict deadlines running. Deadline: August 25, 2026.. NASDAQ: FUTU investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Hong Kong based Futu Holdings Limited engages in the provision of digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. Futu Holdings Limited (NASDAQ: FUTU) reported that its annual Total Revenue rose from 13.59 billion HKD in 2024 to 22.85 billion HKD in 2025, and that its Net Income increased from 5.44 billion HKD in 2024 to 11.34 billion HKD in 2025.

On December 30, 2022, the China Securities Regulatory Commission ("CSRC") issued a statement that Futu Holdings Limited has conducted cross-border securities businesses with domestic investors in mainland China without regulatory consent. As a result, Futu was banned from opening new accounts from mainland Chinese investors and soliciting new business from mainland investors.

Then, on May 22, 2026, before the market opened, Reuters published an article reporting that the CSRC, along with seven other government agencies including the central bank, had launched a crackdown aimed at "brokers it accused of illegally moving money to foreign markets" including "overseas firms and their local partners operating without approval." The article reported "online brokers Tiger, Futu and Longbridge would be penalised for soliciting business in China without an onshore licence, the securities regulator said."

On the same date, pre-market, Futu Holdings Limited issued a press release disclosing that it had received a Notification Letter from the CSRC. The Company reported the letter states "certain Futu entities in mainland China and Hong Kong ... without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China." The letter further states the CSRC "proposes to order the Related Companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB1.85 billion (approximately USD271 million)." Further, the regulatory authority "proposes to impose a personal fine of RMB1.25 million (approximately USD 183,575) on Mr. LI Hua, the founder and CEO of the Company."

Then, on May 28, 2026, before the market opened, Futu Holdings Limited issued a press release reporting financial results for the first quarter 2026, including net income of HK$831.0 million (US$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 USD], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion USD] in an aggregate amount of approximately RMB1.85 billion." The press release reported this adjustment under the Company's financial statements as "Others, net" in its statements of comprehensive income for the applicable period.

Shares of Futu Holdings Limited (NASDAQ: FUTU) declined from $202.53 per share on November 03, 2025, to as low as $88.78 per share on June 09, 2026.

According to the complaint the plaintiff alleges on behalf of purchasers of Futu Holdings Limited (NASDAQ: FUTU) common shares between May 24, 2023 and May 27, 2026, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 24, 2023 and May 27, 2026, the defendants failed to disclose to investors that Futu Holdings Limited was not in compliance with the requirements of the CSRC, including because the Company continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval, that as a result, Futu Holdings Limited was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties, that as a result of the foregoing, Futu's financial results were overstated, and that as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Futu Holdings Limited (NASDAQ: FUTU) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.