Webull Corporation faces class action lawsuit over China ties
Investors have filed a securities class action against Webull Corporation, alleging the company misled shareholders regarding its operational ties to China.
A securities class action lawsuit, Ward v. Webull Corporation et al., has been filed in the U.S. District Court for the Middle District of Florida. The legal action alleges that Webull made materially false statements regarding its business operations and independence from the People's Republic of China between April 26, 2025, and October 6, 2026.
The litigation follows a report issued by the U.S. House Select Committee on China in October 2026, which revealed that a majority of Webull's workforce was based in China, contrary to the company’s public positioning as a U.S.-based entity. Following the report, Webull's stock price dropped 19.09% on October 7, 2026, triggering significant losses for shareholders.
Howard G. Smith, of The Law Offices of Howard G. Smith, stated that the lawsuit centers on the company’s alleged failure to disclose that its core engineering and data infrastructure were reliant on China-based personnel and systems. The deadline for investors to apply as lead plaintiffs in the class action is December 7, 2026.