The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Futu Holdings Limited (FUTU) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU) securities between April 27, 2020 and May 16, 2023, inclusive (the “Class Period”). Futu investors have until August 11, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On October 28, 2021, The Wall Street Journal published an article stating that “[a] senior official at China’s central bank said cross-border online brokerages operating in mainland China were acting illegally,” and specified that Futu “[directs] prospective clients in mainland China to open trading accounts in Hong Kong.” On this news, Futu’s stock price fell $8.55, or 12.8%, to close at $58.47 per ADS on October 28, 2021, thereby injuring investors.

Then, on December 17, 2021, after market hours, Reuters reported that “Chinese officials are planning to ban online brokerages such as Futu . . . 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, Futu’s stock price fell $0.45, or 1.2%, to close at $38.18 on December 18, 2021.

Then, on December 30, 2022, The Wall Street Journal published an article stating that the China Securities Regulatory Commission had determined that Futu’s “act of offering offshore securities-trading services to clients in mainland China doesn’t comply with the country’s laws and regulations.” On this news, Futu’s stock price fell $18.26, or 31%, to close at $40.65 per ADS on December 20, 2022.

Then, on May 16, 2023, Reuters reported that Futu would be removing its app in mainland China. On this news, Futu’s stock price fell $1.91, or 4.4%, to close at $41.24 per ADS on May 16, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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; (3) the foregoing subjected the Company to a heightened risk of regulatory enforcement; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Futu securities during the Class Period, you may move the Court no later than August 11, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Futu securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230619649711/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Futu Holdings Limited (FUTU) Investors