FUTU DEADLINE: Levi & Korsinsky Reminds Futu Holdings Limited Investors of Upcoming Securities Class Action Deadline
The Red Flags: How Futu Holdings Allegedly Concealed a Looming RMB 1.85 Billion CSRC Penalty While Publicly Touting Record Client Growth and Revenue Gains
NEW YORK, July 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP announces that a securities class action has been filed against Futu Holdings Limited (NASDAQ: FUTU).
YOU MAY BE AFFECTED IF YOU:
- Purchased FUTU stock between May 24, 2023 and May 27, 2026
- Lost money on your Futu Holdings investment
Submit your information to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
FUTU shares collapsed $34.10 per share on May 22, 2026, a 27.5% single-session loss, after the CSRC proposed penalties totaling approximately RMB 1.85 billion (USD 271 million). The lead plaintiff deadline is August 25, 2026.
What They Allegedly Knew
The CSRC publicly announced in December 2022 that Futu had been conducting cross-border securities business with mainland Chinese investors without regulatory consent. The Company was banned from opening new accounts for mainland investors and from soliciting new mainland business. By May 2023, the Futubull app was removed from Chinese app stores.
Despite these extraordinary regulatory actions, management continued issuing quarterly press releases highlighting accelerating client growth, surging trading volumes, and rising revenues throughout the Class Period. The lawsuit contends that executives knew their mainland China operations lacked the requisite CSRC licenses for securities, public fund sales, and futures business, yet presented financial results that included revenue derived from those allegedly illegal activities.
The Red Flags That Emerged
The complaint chronicles a pattern of warning signs that allegedly should have prompted more specific disclosure to shareholders:
- The December 2022 CSRC statement explicitly identified Futu's cross-border operations as conducted "without regulatory consent"
- The Futubull app was pulled from mainland Chinese app stores in May 2023, confirming active regulatory enforcement
- SEC filings acknowledged the Company "does not hold any license or permit for providing securities brokerage services in Mainland China"
- Annual reports admitted rectification measures offered "no assurance" of satisfying the CSRC
- Despite these admissions, the Company continued reporting paying client increases of 15% to 41% year-over-year across successive quarters
- No provision or accrual for potential penalties appeared in financial statements until after the CSRC notification letter arrived in May 2026
Inside Knowledge vs. Public Statements
The securities action asserts that a stark gap existed between what the Company disclosed in boilerplate risk factors and what it knew about the severity of its regulatory exposure. While SEC filings used speculative language such as "if the CSRC pursues further regulatory actions" and "we have limited information to accurately predict," the complaint alleges the Company was actively operating businesses it knew required licenses it did not possess. The proposed penalty of RMB 1.85 billion, including confiscation of RMB 470 million in "illegal gains," suggests the scope of the unlicensed activity was substantial and quantifiable throughout the Class Period.
"The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public. For over three years, Futu reported record operational metrics while allegedly operating without required Chinese regulatory licenses." -- Joseph E. Levi, Esq.
Act now to protect your rights or call (212) 363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, 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. Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the FUTU Lawsuit
Q: When did Futu Holdings allegedly mislead investors? A: The class period runs from May 24, 2023 to May 27, 2026. The alleged fraud was revealed through corrective disclosures on May 22, 2026, when Reuters reported the CSRC crackdown and Futu confirmed receiving a notification letter proposing RMB 1.85 billion in penalties, and again on May 28, 2026, when Q1 2026 results reflected the proposed penalties.
Q: What specific misstatements does the FUTU lawsuit allege? A: The complaint alleges Futu made materially false or misleading statements regarding its regulatory compliance status, failing to disclose that it continued to conduct securities, public fund sales, and futures business in mainland China without required CSRC licenses, and that its reported financial results were overstated as a result.
Q: What do FUTU investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a 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: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
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 if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
SOURCE Levi & Korsinsky, LLP
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