Futu Holdings has been hit with a shareholder class action lawsuit in the United States, according to a report cited by Caixin. The case follows earlier lawsuits by market makers Susquehanna International Group and Citadel Securities against alleged options insider traders tied to Futu Holdings and Tiger Brokers. A recent filing in the U.S. District Court for the Southern District of New York names Futu, its founder, chairman and chief executive Li Hua, and chief financial officer Chen Yu as defendants. The complaint alleges violations of the U.S. Securities Exchange Act of 1934, including securities fraud and control person liability. The report said Li and Chen were named individually because they had authority to review, approve, or control Futu’s filings with the U.S. Securities and Exchange Commission, earnings releases, and other public disclosures. Earlier reports also said the SEC is investigating allegations raised by market maker Susquehanna involving suspected insider trading in U.S. stock options related to Futu and Tiger Brokers.
Futu Holdings is facing a shareholder class action lawsuit in the United States, Caixin reported, after market makers Susquehanna International Group and Citadel Securities had already sued alleged options insider traders linked to Futu Holdings and Tiger Brokers.
An investor recently filed the securities class action in the U.S. District Court for the Southern District of New York. The complaint names Futu Holdings, founder, chairman and chief executive officer Li Hua, and chief financial officer Chen Yu as defendants, alleging violations of the anti-fraud and control person liability provisions of the U.S. Securities Exchange Act of 1934.
Li Hua and Chen Yu named as individual defendants
The report said Li came from Tencent’s ranks and was the company’s 18th founding employee. He took part in early QQ development, was also a founder of Tencent Video, and previously led Tencent’s multimedia business and innovation center.
Li and Chen were named as individual defendants mainly because they had the power to review, approve, or control Futu’s filings submitted to the U.S. Securities and Exchange Commission, its earnings releases, and other public disclosures.
SEC had already opened an investigation
Earlier reports said the U.S. Securities and Exchange Commission is investigating allegations made by market maker Susquehanna involving insider trading in U.S. stock options related to Futu and Tiger Brokers.
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