Futu Holdings has been hit with a class action lawsuit by shareholders in the U.S., following allegations of securities fraud. The lawsuit, filed in the Southern District of New York, accuses Futu Holdings, its founder and CEO Li Hua, and CFO Chen Yu of violating the Securities Exchange Act of 1934. The legal action claims that the executives had control over the company's disclosures to the U.S. Securities and Exchange Commission (SEC) and other public statements.
This development comes after market makers Susquehanna and Citadel Securities initiated legal proceedings against Futu Holdings and Tiger Brokers over alleged insider trading in U.S. stock options. The SEC is currently investigating these claims. Li Hua, a former key figure at Tencent, is noted for his involvement in the early development of Tencent QQ and founding Tencent Video.
Futu Holdings Faces Class Action Lawsuit in U.S. Over Securities Fraud
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