The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU) securities during the period from April 27, 2020 through May 16, 2023 (the “Class Period”). Investors have until August 11, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Futu Holdings Limited operates as a holding company that, through its subsidiaries, offers an online brokerage platform that enables individual investors to trade in listed stocks.
On October 28, 2021, the Wall Street Journal released an article entitled “Chinese Online Broker Shares Dropped After Criticism From Central Bank”, which discussed a speech given by Sun Tianqi, the head of the financial stability department of the People’s Bank of China. The article stated, in pertinent part: “A senior official at China’s central bank said cross-border online brokerages operating in mainland China were acting illegally, knocking shares in U.S.-listed Futu Holdings Ltd. . . . . The criticism heaps new pressure on [Futu] after [it was] called out earlier this month by Chinese state media, which said the [firm] would face challenges due to the country’s tough new data-privacy laws.” On this news, the price of Futu shares declined by $8.55 per share, or approximately 12.76%, from $67.02 per share to close at $58.47 on October 28, 2021.
On December 16, 2021, Reuters released an article entitled “EXCLUSIVE: Next in China Regulatory crackdown: online brokers sources.” The article stated, in pertinent part: “Chinese officials are planning to ban online brokerages such as Futu Holdings Ltd (FUTU.O) . . . from offering offshore trading services to mainland clients, the latest development in a broad regulatory crackdown that has roiled a wide range of sectors over the past year.” On this news, the price of Futu shares declined by $3.50 per share, or approximately 8.57%, from $40.84 per share to close at $37.34 on December 16, 2021.
On December 30, 2022, the Wall Street Journal released an article entitled “China Regulator Says Futu, Up Fintech Violated Laws.” The article stated, in pertinent part: “The regulator also said it was requiring Futu . . . to stop taking on or soliciting new domestic clients and customers, who aren’t allowed to open accounts [and] . . . . Chinese state media had called out [Futu] for flouting China’s securities and other laws.” On this news, the price of Futu shares declined by $18.26 per share, or approximately 31.00%, from $58.91 per share to close at $40.65 on December 30, 2022.
On May 16, 2023, Reuters released an article entitled “Two online brokerages to remove China apps as Beijing data crackdown widens.” The article stated in pertinent part: “Futu, backed by Chinese internet giant Tencent Holdings Ltd, said on Tuesday its apps would be removed from app stores in China from May 19, while UP Fintech, also known as Tiger Brokers, would do the same with effect from May 18.” On this news, the price of Futu shares declined by $1.91 per share, or approximately 4.43%, from $43.15 per share to close at $41.24 on May 16, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) Futu’s business was, quite simply, illegal as it related to operations in China as a result of its failure to obtain the proper licenses; (2) it did not fully disclose to investors that it was engaging in unlawful activity and instead falsely characterized the applicable Chinese laws as ambiguous; and (3) the foregoing subjected the Company to a heightened risk of regulatory enforcement.
If you purchased or otherwise acquired Futu securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
