FUTU Deadline Alert: SueWallSt Reminds Futu Holdings Limited (FUTU) Investors of Securities Class Action Deadline on August 25, 2026

Important Notice Regarding Alleged Unlicensed Cross-Border Securities Operations That Resulted in RMB 1.85 Billion in Proposed Regulatory Penalties

NEW YORK, July 9, 2026 /PRNewswire/ -- SueWallSt notifies investors in Futu Holdings Limited (NASDAQ: FUTU) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between May 24, 2023 and May 27, 2026. Find out if you could qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Futu shares fell $34.10 per share, a 27.5% single-day decline, after regulators proposed approximately $271 million in penalties for alleged unlicensed brokerage operations in mainland China. The lead plaintiff deadline is August 25, 2026.

How Unlicensed Operations Allegedly Inflated Financial Results

The global online brokerage sector has drawn intense regulatory scrutiny as platforms expand across borders. Futu built a substantial business serving mainland Chinese investors through its Futubull platform, growing paying clients from 1.5 million in early 2023 to over 2.8 million by mid-2025. The lawsuit contends that this growth was fueled by operations conducted without requisite CSRC licenses or regulatory approval, meaning revenues and client metrics reported throughout the Class Period were allegedly tainted by illegal activity.

The CSRC first flagged Futu's cross-border operations in December 2022, banning new mainland Chinese account openings. Yet the complaint alleges the Company continued conducting securities, public fund sales, and futures business in mainland China without obtaining the required licenses.

Key Allegations Regarding Regulatory Non-Compliance for Shareholders

• The CSRC proposed confiscation of approximately RMB 470 million (roughly $69 million) in gains the regulator characterized as illegally obtained
• The CSRC proposed additional fines of approximately RMB 1.38 billion (roughly $203 million), bringing total proposed penalties to approximately RMB 1.85 billion ($271 million)
• Futu's Futubull app was removed from mainland Chinese app stores in May 2023, yet the action alleges unlicensed business activity continued
• The Company's quarterly earnings releases throughout the Class Period reported growing client counts and rising revenues without disclosing that a material portion allegedly derived from non-compliant operations
• A personal fine of RMB 1.25 million was proposed against the Company's founder and chief executive

The Regulatory Overhang Factor

The lawsuit asserts that Futu's SEC filings used hedging language suggesting penalties were merely hypothetical. The Company's annual reports stated it had "limited information to accurately predict if any disciplinary action or punishment will be taken." The action contends this language was misleading because Futu knew it was operating without required licenses and that regulatory consequences were not speculative but foreseeable.

When the China Securities Regulatory Commission, along with seven other government agencies including the central bank, launched a coordinated crackdown on brokers accused of illegally moving money to foreign markets, the alleged gap between Futu's disclosures and operational reality was exposed.

"This case presents important questions about cross-border regulatory compliance disclosure obligations in the online brokerage sector. Investors are entitled to know whether a company's reported growth depends on activities that lack regulatory authorization." -- Joseph E. Levi, Esq.

Submit your information here or contact Joseph E. Levi, Esq. at (888) SueWallSt.

WHY SUEWALLST: SueWallSt is a brand of Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the FUTU Lawsuit

Q: What is the FUTU class action lawsuit about? A: A securities class action has been filed against Futu Holdings Limited (NASDAQ: FUTU) alleging materially false and misleading statements between May 24, 2023 and May 27, 2026. Shares fell approximately 27.5% after the truth was revealed, causing significant losses for shareholders.

Q: Who is eligible to join the FUTU investor lawsuit? A: Investors who purchased FUTU stock or securities between May 24, 2023 and May 27, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: How much did FUTU stock drop? A: Shares fell approximately 27.5%, a decline of $34.10 per share, after the Company disclosed receipt of a CSRC Notification Letter proposing RMB 1.85 billion in penalties for alleged unlicensed cross-border brokerage operations. A further 4.8% decline followed days later when Q1 2026 results reflected the proposed penalties.

Q: What do FUTU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my FUTU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What court was the FUTU class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

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SOURCE SueWallSt.com