Futu Holdings Faces Securities Class Action Over Regulatory Compliance

The class action complaint alleges that Futu Holdings Limited failed to disclose that it conducted securities, public fund sales, and futures business in mainland China without obtaining the necessary licenses from the China Securities Regulatory Commission (CSRC). According to the filing, these omissions led to overstated financial results and left the company vulnerable to significant regulatory penalties.

Legal scrutiny intensified following a May 2026 disclosure that the CSRC proposed penalties totaling approximately 1.85 billion RMB—roughly 271 million USD—against the company, alongside personal fines for CEO Li Hua. Following the initial announcement on May 22, Futu shares dropped more than 27%. A subsequent report on May 28 regarding first-quarter financial results, which accounted for these penalties, triggered a further decline of nearly 5% in the company’s stock price. Faruqi & Faruqi, LLP is currently investigating these claims and inviting affected shareholders to discuss their legal options before the late August deadline.