The lawsuit, filed in the United States District Court for the Southern District of New York, alleges that Futu misled shareholders regarding the legality of its business model in mainland China. While the company reported rapid growth—expanding from 1.5 million paying clients in early 2023 to over 2.8 million by mid-2025—the complaint claims this expansion relied on operations conducted without requisite licenses from the China Securities Regulatory Commission (CSRC).

According to the allegations, Futu continued its securities and public fund sales despite a December 2022 ban on new mainland account openings. The regulatory fallout resulted in approximately $271 million in proposed penalties, including a personal fine against the company's founder. The suit contends that Futu’s SEC filings characterized these potential sanctions as merely hypothetical, failing to disclose that the company’s core revenue growth was tied to non-compliant activities. Investors seeking to participate in the class action may contact counsel at Levi & Korsinsky LLP before the August deadline.