The complaint filed by Robbins LLP asserts that Futu failed to disclose its lack of requisite licenses for securities, public fund sales, and futures businesses within mainland China. According to the filing, the company faced significant risks of regulatory penalties, including the disgorgement of gains, which were not properly communicated to the market. Consequently, plaintiffs argue that the company’s financial results were overstated and its public representations regarding operations lacked a reasonable basis.

The situation came to a head on May 28, 2026, when Futu disclosed net income figures for the first quarter that accounted for approximately RMB1.85 billion in combined fines and confiscated gains. Following the disclosure of these penalties, the company's stock price dropped $5.31, or 4.8%, closing at $104.91. Shareholders seeking to serve as lead plaintiff in the case must submit their applications to the court by August 25, 2026.