On September 25, 2024, Skadden secured the dismissal of a putative securities fraud class action on behalf of Futu Holdings, which operates a leading digitized brokerage and wealth management platform in China, Hong Kong, the United States, and elsewhere. The plaintiffs brought claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Futu and its senior executives, alleging defendants misrepresented Futu’s regulatory compliance and failed to disclose that it was operating in China without a brokerage license.
Judge Brian Martinotti of the U.S. District Court for the District of New Jersey granted Futu’s motion to dismiss. The court held that the plaintiffs failed to plead any actionable misstatement or omission. Robert Fumerton, Steve Kwok and Scott Musoff led the Skadden team.