NEW YORK, May 28, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Futu and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 16, 2023, the Wall Street Journal published an article entitled “Two Trading Apps That Allowed Chinese Citizens to Invest Overseas Get Pulled From China.” The article reported that “Futu Holdings and Up Fintech Holding, known as Tiger Brokers, are planning to remove apps from online stores in China that allow their customers to trade stocks overseas,” and that “Futu . . . would remove its Futubull app in the country starting Friday, and that existing clients in mainland China can still make trades on the app afterward[.]”
On this news, Futu’s American depositary receipt (“ADR”) price fell $1.91 per ADR, or 4.43%, to close at $41.24 per ADR on May 16, 2023.
Then, on May 18, 2023, J.P. Mogan analyst Katherine Lei downgraded Futu to Neutral from Overweight, citing the Company’s decision to remove its app from China app markets, opining that the stock decline following the announcement had not factored in the potential revenue decline from existing clients in China.
On this news, Futu’s stock price fell $2.76 per ADR, or 6.66%, to close at $38.66 per ADR on May 18, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980