#United States #New York #Securities Fraud #Levi Korsinsky #UP Fintech

Levi & Korsinsky's Reminder to UP Fintech Shareholders

Levi & Korsinsky, LLP has issued a crucial notification to shareholders of UP Fintech Holding Limited (NASDAQ: TIGR), cautioning them about a significant deadline regarding a securities fraud class action. Shareholders who acquired TIGR securities between April 22, 2024, and June 2, 2026, are encouraged to take note of the lead plaintiff deadline, which is set for December 28, 2026. This action stems from allegations that UP Fintech misled investors regarding its operational compliance within the Chinese market.

Context of the Lawsuit

The lawsuit alleges that UP Fintech's assurances regarding its operations in mainland China did not align with the reality of their practices. Despite the company’s claims that it was cooperating fully with Chinese regulatory authorities, the enforcement actions against its subsidiaries suggest otherwise. Notably, the Chinese Securities Regulatory Commission (CSRC) discovered that UP Fintech had engaged in unlicensed cross-border securities activities, leading to significant financial penalties.

Following this revelation, the firm’s stock dropped markedly. From a pre-disclosure price of $5.84 per American Depository Share (ADS), UP Fintech's stock plummeted to $4.67 by June 3, 2026. This represented a decline of approximately $1.17 per ADS, or roughly 20%. Shareholders were left grappling with a disappointing swing in the company’s first-quarter financial results, switching from a net income of $30.4 million in 2025 to a staggering net loss of $26.9 million in 2026, once penalties were included.

Observations and Discrepancies

The class action emerged after discrepancies were observed between the company’s stated efforts to comply with regulatory requirements and the findings reported by the CSRC. Annual reports filed between 2024 and 2026 included claims of active cooperation with stipulations set forth by regulators, which included halting the opening of new accounts for mainland Chinese customers. However, various determinations made in May 2026 contradicted these claims, suggesting continued non-compliance.

Specific Findings

On May 22, 2026, UP Fintech confirmed findings from the CSRC indicating that their subsidiaries had been involved in unlawful practices. These activities had critical implications, resulting in penalties and confiscations totaling approximately RMB 411.2 million (about $64 million). As a part of the fallout, the lawsuit asserts that the company failed to adequately disclose the risks associated with such regulatory actions, potentially causing investors to purchase shares at inflated prices.

What Investors Should Do

Investors who feel they’ve suffered losses during the specified class period are urged to gather relevant brokerage records detailing their purchases. Those interested in pursuing compensation can submit their information to Levi & Korsinsky for a thorough review, which entails no cost or obligation.

The firm has established a reputation for representing shareholder interests effectively, having secured substantial recoveries for investors in similar situations. Prospective plaintiffs have until December 28, 2026, to seek appointment as lead plaintiff in this class action, which underscores the seriousness of this situation.

Conclusion

To navigate these legal complexities, investors in UP Fintech Holding Limited should remain proactive in understanding their rights and options. The discrepancies raised in the lawsuit highlight a vital reminder of the potential risks associated with investment decisions and the importance of regulatory compliance. For further assistance, shareholders may contact Joseph E. Levi at [email protected] or call (212) 363-7500.

By staying informed and engaged, investors can better protect their interests.

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