Webull Faces Securities Lawsuit Over Alleged Ties to China
Investors have launched a class action lawsuit against Webull Corporation after a U.S. House Select Committee report contradicted the company’s repeated claims that it operated independently of Chinese influence. The legal challenge follows a sharp 19% drop in share price triggered by revelations regarding the firm’s structural and technical dependencies.
The lawsuit, filed in the U.S. District Court for the Middle District of Florida, alleges that Webull misled shareholders between April 26, 2025, and October 6, 2026. According to the complaint, the company’s annual reports falsely claimed it fell outside the scope of regulations targeting China-connected entities and dismissed congressional inquiries as based on outdated information. Plaintiffs contend these assurances artificially inflated the stock price.
Evidence cited in the complaint suggests the deception was significant. While Webull reportedly told investigators it had no employees in China, data from late 2025 indicated that its mainland subsidiary employed 863 people—roughly 62% of the company's total global workforce. The House Select Committee ultimately concluded that Webull’s ownership architecture, technology infrastructure, and compliance frameworks were structurally linked to the People's Republic of China. Investors who suffered losses during the specified period have until December 7, 2026, to apply for lead plaintiff status.
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