UP Fintech Holding Limited faces class action lawsuit over regulatory disclosures
Investors have filed a class action lawsuit against UP Fintech Holding Limited, alleging the company misled shareholders regarding its regulatory compliance in China.
The Law Offices of Frank R. Cruz has initiated a class action lawsuit against UP Fintech Holding Limited, covering the period between April 22, 2024, and June 2, 2026. The complaint alleges that the firm failed to disclose significant legal risks related to its operations in mainland China, leading to financial losses for investors.
The litigation follows an investigation by the China Securities Regulatory Commission (CSRC) into the company’s subsidiary, Tiger Brokers, regarding unlicensed cross-border securities activities. The disclosure of this investigation in May 2026 triggered a 25.34% drop in the company's stock price. Subsequent reports confirmed the imposition of approximately $59.7 million in administrative penalties.
The lawsuit asserts that the company’s positive statements regarding its business prospects lacked a reasonable basis due to the undisclosed regulatory exposure. Investors seeking to participate as lead plaintiffs must submit their motions to the U.S. District Court of New Jersey by December 28, 2026.