Lost Money on Futu Holdings Limited (FUTU)? Join Class Action Suit Seeking Recovery - Contact Levi & Korsinsky
Alert: Claims Focus on Alleged Illegal Solicitation of Mainland Chinese Investors That Generated Hundreds of Millions in Revenue Now Subject to RMB 1.85 Billion Penalty
NEW YORK, July 29, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Futu Holdings Limited (NASDAQ: FUTU) securities of a pending securities class action.
THE CASE: A class action seeks to recover damages for investors who purchased FUTU securities between May 24, 2023 and May 27, 2026.
YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you can recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Futu shares fell $34.10 per share, a decline of 27.5%, on May 22, 2026, after the China Securities Regulatory Commission proposed penalties totaling approximately RMB 1.85 billion (USD 271 million). The lead plaintiff deadline is August 25, 2026.
How Futu Allegedly Built Revenue on Unlicensed Operations
A digitalized brokerage cannot lawfully serve mainland Chinese investors in securities, public fund sales, or futures without obtaining the requisite licenses from the CSRC. The lawsuit contends that Futu entities in mainland China and Hong Kong conducted exactly these businesses without approval, generating substantial revenue from a client base that regulators had expressly flagged as off-limits.
The CSRC first announced in December 2022 that Futu had conducted cross-border securities business with domestic Chinese investors without regulatory consent. Despite this public warning, the Company allegedly continued deriving revenue from these operations throughout the Class Period, touting metrics like paying client growth of 15% to 41% year-over-year and total client assets expanding from HK$465.5 billion to HK$973.9 billion.
Alleged Operational Non-Compliance by the Numbers
The action claims the following operational realities were concealed from or minimized to shareholders:
- Futu operated securities, public fund sales, and futures businesses in mainland China without the requisite CSRC licenses or approval
- The Futubull app was removed from Chinese app stores in May 2023 as a rectification measure, yet the Company allegedly continued serving existing mainland clients
- The CSRC proposed confiscation of RMB 470 million (approximately USD 69 million) in illegal gains, confirming the scale of revenue derived from unlicensed activity
- An additional RMB 1.38 billion (approximately USD 202 million) in fines was proposed on top of the disgorgement
- A personal fine of RMB 1.25 million was proposed against the Company's founder and chief executive, indicating individual culpability
- Futu's Q1 2026 net income was reduced to HK$831 million after booking the proposed penalties as "Others, net" in its financial statements
Calculate your potential recovery or call (212) 363-7500.
The App Removal That Signaled Deeper Problems
In May 2023, media reported that Futu's app would be removed from app stores in China, a step Reuters noted the removal "would bar a large number of potential retail investors in mainland China from trading securities easily in markets such as the U.S. and Hong Kong." The filing states this removal was a response to CSRC rectification requirements. Yet the Company's subsequent quarterly reports continued to highlight surging client numbers and trading volumes without adequately disclosing that its core mainland China operations lacked legal authorization, according to the complaint.
"The complaint raises serious questions about whether investors received accurate information about the sustainability of revenue generated from operations that lacked required regulatory approvals." -- Joseph E. Levi, Esq.
Investors have until August 25, 2026, to seek lead plaintiff status.
WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until August 25, 2026 to seek appointment as lead plaintiff. Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the FUTU Lawsuit
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 unlicensed mainland China operations. A subsequent 4.8% decline followed the Q1 2026 earnings report reflecting 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 with CSRC requirements during the Class Period. Specifically, the Company allegedly failed to disclose that it continued conducting unlicensed securities, fund sales, and futures business in mainland China, exposing it to significant penalties.
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.
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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