The Law Offices of Frank R. Cruz reminds investors of the upcoming August 11, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU) securities between April 27, 2020 and May 16, 2023, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On October 28, 2021, The Wall Street Journal published an article stating that “[a] senior official at China’s central bank said cross-border online brokerages operating in mainland China were acting illegally,” and specified that Futu “[directs] prospective clients in mainland China to open trading accounts in Hong Kong.” On this news, Futu’s stock price fell $8.55, or 12.8%, to close at $58.47 per ADS on October 28, 2021, thereby injuring investors.
Then, on December 17, 2021, after market hours, Reuters reported that “Chinese officials are planning to ban online brokerages such as Futu . . . from offering offshore trading services to mainland clients, the latest development in a broad regulatory crackdown that has roiled a wide range of sectors over the past year.” On this news, Futu’s stock price fell $0.45, or 1.2%, to close at $38.18 on December 18, 2021.
Then, on December 30, 2022, The Wall Street Journal published an article stating that the China Securities Regulatory Commission had determined that Futu’s “act of offering offshore securities-trading services to clients in mainland China doesn’t comply with the country’s laws and regulations.” On this news, Futu’s stock price fell $18.26, or 31%, to close at $40.65 per ADS on December 20, 2022.
Then, on May 16, 2023, Reuters reported that Futu would be removing its app in mainland China. On this news, Futu’s stock price fell $1.91, or 4.4%, to close at $41.24 per ADS on May 16, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Futu’s business was, quite simply, illegal as it related to operations in China as a result of its failure to obtain the proper licenses; (2) it did not fully disclose to investors that it was engaging in unlawful activity and instead falsely characterized the applicable Chinese laws as ambiguous; (3) the foregoing subjected the Company to a heightened risk of regulatory enforcement; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Futu securities during the Class Period, you may move the Court no later than August 11, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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