A securities class action has been filed against Webull Corporation (BULL) on behalf of persons or entities who purchased or otherwise acquired publicly traded Webull securities between April 26, 2025 through October 6, 2026. This case has been filed in the USDC – MDFL.
On October 7, 2026, CNBC published an article entitled “Trading platform Webull’s China ties create national security risk, congressional panel finds; stock drops 18%”. The article stated that Webull is “quietly ‘tied in structural ways’ to China’s government, representing a national security threat to U.S. finance, according to a bipartisan congressional panel’s findings shared exclusively with CNBC.”
Defendants were on notice of the precise subject of the alleged misstatements throughout the Class Period. Webull itself disclosed that, on December 5, 2024, the Select Committee delivered a letter to the chief executive officer of Webull Financial requesting information concerning the relationship between Webull Financial and Webull’s operations in China, and the security of sensitive customer data, and that Webull was cooperating with the Select Committee. The complaint alleges that Webull did not reveal to a Senate Commites that Webull “is quietly ‘tied in structural ways’ to China’s government.
The Select Committee found that Webull initially told the Select Committee that it had no offices or employees in China.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and the other Class members have suffered significant losses and damages.
In SEC filings, including a September 2025 prospectus and its April 2026 annual report, Webull told investors it believed concerns raised in a late-2024 Select Committee letter about its China operations “were largely based on outdated and inaccurate information.” Those filings also stated that Webull’s mainland China operations “are limited to research and development and technical support functions.”
The Committee’s October 7 report identified “a profound gap” between Webull’s presentation of itself as “an American company,” headquartered in St. Petersburg, Florida, and what it called the firm’s “operational reality.” The report states that Webull kept finance, clearing and customer-service leadership roles in mainland China, and that Webull Financial told the Committee in early 2025 that it had no offices or employees in China. The report also questions the security of American customers’ data and the company’s regulatory controls. Webull has disputed the report’s findings.
On this news, Webull stock fell 19% on October 7, 2026.