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TIGR.US
id: 529, Created by Stan Vick, Scout

UP Fintech (TIGR) China’s Regulator Violations Investigation Case

C.D. California
Court
23-CV-04842
Case number
  • China’s securities regulator reported that UP Fintech violated its domestic laws.
  • $TIGR plunged 28.5% and lost $210 million of its market cap, damaging shareholders.
  • Investors suspect UP Fintech & its Leaders of misleading and misconduct.
On December 30, 2022, China’s securities regulator (CSRC) reported that UP Fintech Holding Limited (NASDAQ: TIGR) violated its domestic laws by allowing customers on the mainland to make cross-border trades.

On this news, TIGR's ADRs plunged over 28% and the Company lost more than $200 billion of its capitalization, seriously damaging investors.
  • As wrote the WSJ, The regulator also said it was requiring UP Fintech to stop taking on or soliciting new domestic clients and customers, who aren’t allowed to open accounts.
  • The CSRC said it intends to dispatch officers to conduct on-site inspections on TIGR.
  • The Company s didn’t immediately respond to the WSJ request for comment.
Now, TIGR ADRs holders have all reasons to suspect that the Company, its Leaders, and its Service Providers grossly violated their investor rights, which led to material damages to the value of the securities positions.

Specifically, the Company and its Leaders failed to disclose, among other things, that:
  1. UP Fintech’s business was, quite simply, illegal as it related to operations in China as a result of its failure to obtain the proper licenses;
  2. it did not fully disclose to investors that it was engaging in an unlawful activity and instead characterized the applicable Chinese laws as ambiguous;
  3. the foregoing subjected the Company to a heightened risk of regulatory enforcement; and
  4. as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
When the true details entered the market, the lawsuit claims that investors suffered damages.
Alleged Offence
Mismanagement
Failure to Disclose
Malpractice
Negligence
Omissions
Suspected Party
Directors
Management
Government Authority
Service Provider
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
30 December 2022
Filing date
20 June 2023
Lead Plaintiff Deadline
21 August 2023
Collecting participants…
Created by Stan Vick, Scout

Up Fintech Holding Ltd

UP Fintech Holding Limited provides online brokerage services focusing on Chinese investors. The company has developed a brokerage platform, which allows investor to trade stocks, options, warrants...

    Ticker
    TIGR.US
    ISIN
    US91531W1062
    Sector
    Financial Services
    Industry
    Capital Markets
    Country
    USA
    Address
    Grandyvic Building, Beijing, China, 100020