Futu Holdings faces a class action lawsuit filed by shareholders in the United States

PANews, July 15—According to Caixin, after market makers Haina International and Castle Securities sued Futu Holdings and the Tiger Securities option insider trading participants, Futu Holdings has now been hit with a shareholder class action in the United States. A certain investor recently filed a securities class action with the U.S. District Court for the Southern District of New York, alleging that Futu Holdings and its founder, Chairman and Chief Executive Officer Li Hua, as well as its Chief Financial Officer Chen Yu, violated the provisions of the U.S. Securities Exchange Act of 1934 regarding securities fraud and liability of controlling persons.

It is understood that Li Hua is from Tencent’s ecosystem and was Tencent’s 18th founding employee. He participated in early R&D for Tencent QQ, is also the founder of Tencent Video, and previously served as the head of Tencent’s Multimedia Business and Innovation Center. The two individuals are listed as personal defendants mainly because they had review, approval, or controlling authority over documents, performance announcements, and other external disclosures submitted by Futu to the U.S. Securities and Exchange Commission.

Earlier, there were reports that the U.S. SEC is conducting an investigation into allegations involving market maker Susquehanna, involving insider trading of U.S. stock options related to Futu and Tiger.