The complaint, filed by the law firm Robbins LLP, asserts that Futu failed to disclose its lack of necessary licenses for conducting securities, public fund sales, and futures business within mainland China. According to the filing, this non-compliance with China Securities Regulatory Commission requirements left the company vulnerable to severe regulatory penalties, including the disgorgement of profits. Plaintiffs argue that these undisclosed risks led to overstated financial results and rendered the company’s public statements regarding its business prospects materially misleading.

Financial transparency issues surfaced on May 28, 2026, when Futu disclosed net income figures for the first quarter of 2026 that accounted for approximately 1.85 billion RMB in penalties, including confiscated gains and fines. Following this disclosure, the company's stock price dropped $5.31, or 4.8%, closing at $104.91. Investors seeking to serve as lead plaintiffs in the ongoing litigation against the Hong Kong-based firm may contact Robbins LLP, which is representing the class on a contingency fee basis.