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

PANews July 15, 2023, reports that, according to Caixin, after market makers Haina International and Castle Securities sued Futu Holdings and the options insider traders of Tiger Securities, Futu Holdings has been sued in the United States by shareholders in a class action. Recently, a certain investor filed a securities class action lawsuit with the U.S. District Court for the Southern District of New York, alleging violations of the U.S. Securities Exchange Act of 1934 regarding securities fraud and controlling-person liability, and naming Futu Holdings, its founder, Chairman and CEO Li Hua, and its Chief Financial Officer Chen Yu as defendants.

It is understood that Li Hua came from Tencent’s ecosystem and was Tencent’s 18th founding employee. He was an early participant in the R&D of Tencent QQ and is also the founder of Tencent Video. He previously also served as the head of Tencent’s multimedia business and the Innovation Center. The two individuals were listed as individual defendants primarily because they had review, approval, or controlling authority over Futu’s filings submitted to the U.S. Securities and Exchange Commission, performance announcements, and other external disclosures.

Earlier, it was reported that the U.S. SEC was launching an investigation into allegations involving market maker Susquehanna, concerning Futu and Tiger-related U.S. stock options insider trading.