The complaint, filed by Robbins LLP, targets Webull’s disclosures between April 26, 2025, and October 6, 2026. Plaintiffs contend the company falsely presented itself as a U.S.-based entity while maintaining core engineering, data pipelines, and infrastructure tethered to the People's Republic of China. The legal challenge gained momentum after a report from the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party revealed a "profound gap" between Webull's public image and its internal reality.

According to the Select Committee, Webull’s mainland China subsidiary employed approximately 863 people—roughly 62% of its global workforce—despite previous assurances that the firm lacked such a footprint. Following this disclosure on October 7, 2026, Webull shares dropped $1.39 to close at $5.89 on high trading volume. Investors who suffered losses during the class period have until December 7, 2026, to file for lead plaintiff status in the ongoing litigation.