Futu Holdings Faces Class Action Lawsuit in the U.S.

Futu Holdings has been hit with a class action lawsuit by shareholders in the United States. An investor has filed a lawsuit in the Southern District of New York Federal Court, accusing the company of violating the Securities Exchange Act of 1934 regarding securities fraud and controlling person liability. The defendants include Futu Holdings and its founder, chairman, and CEO, Li Hua, as well as CFO Chen Yu. Li Hua was the 18th founding employee of Tencent and was involved in the development of Tencent QQ and Tencent Video. Both individuals are named as personal defendants due to their authority to review, approve, or control the documents and performance announcements submitted by Futu to the U.S. Securities and Exchange Commission (SEC). Previously, the SEC was investigating allegations against market maker Susquehanna, involving insider trading of U.S. stock options related to Futu and Tiger Brokers.

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