Law Offices of Howard G. Smith Encourages Futu Holdings Limited (FUTU) Shareholders To Inquire About Securities Fraud Class Action

Law Offices of Howard G. Smith Encourages Futu Holdings Limited (FUTU) Shareholders To Inquire About Securities Fraud Class ActionLaw Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU) securities between May 24, 2023 and May 27, 2026, inclusive (the “Class Period”). Futu investors have until August 25, 2026 to file a lead plaintiff motion.IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN FUTU HOLDINGS LIMITED (FUTU), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.What Happened?On December 30, 2022, the China Securities Regulatory Commission (“CSRC”) issued a statement that Futu has conducted cross-border securities businesses with domestic investors in mainland China without regulatory consent. As a result, Futu was banned from opening new accounts from mainland Chinese investors and soliciting new business from mainland investors.Then, on May 22, 2026, before the market opened, Reuters published an article reporting that the CSRC, along with seven other government agencies including the central bank, had launched a crackdown aimed at “brokers it accused of illegally moving money to foreign markets” including “overseas firms and their local partners operating without approval.” The article reported “online brokers Tiger,Futuand Longbridgewould be penalised for soliciting business in China without an onshore licence, the securities regulator said.”On the same date, pre-market, Futu issued a press release disclosing that it had received a Notification Letter from the CSRC. The Company reported the letter states “certain Futu entities in mainland China and Hong Kong … without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China.” The letter further states the CSRC “proposes to order the Related Companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB1.85 billion (approximately USD271 million).” Further, the regulatory authority “proposes to impose a personal fine of RMB1.25 million (approximately USD 183,575) on Mr. LI Hua, the founder and CEO of the Company.”On this news, Futu’s stock price fell $34.10, or 27.5%, to close at $89.76 per share on May 22, 2026, on unusually heavy trading volume.Then, on May 28, 2026, before the market opened, Futu issued a press release reporting financial results for the first quarter 2026, including net income of HK$831.0 million (US$106.0 million) after giving effect to the proposed penalties comprised of: “(i) confiscation of illegal gains of approximately RMB470 million [approximately $69.21 million USD], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion USD] in an aggregate amount of approximately RMB1.85 billion.” The press release reported this adjustment under the Company’s financial statements as “Others, net” in its statements of comprehensive income for the applicable period.On this news, Futu’s stock price fell $5.31, or 4.8%, to close at $104.91 on May 28, 2026, on unusually heavy trading volume.What Is The Lawsuit About?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 was not in compliance with the requirements of the CSRC, including because the Company continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval; (2) as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (3) as a result of the foregoing, Futu’s financial results were overstated; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.Contact Us To Participate or Learn More: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 us:Law Offices of Howard G. Smith,3070 Bristol Pike, Suite 112,Bensalem, Pennsylvania 19020,Telephone: (215) 638-4847Email: howardsmith@howardsmithlaw.com,Visit our website at: www.howardsmithlaw.com.This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Law Offices of Howard G. SmithHoward G. Smith, Esquire215-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.comView source version on businesswire.com: https://www.businesswire.com/news/home/20260629799386/en/

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