The suit’s relevant period begins March 10, 2020, the day Future FinTech announced Huang as its new CEO. The complaint alleges the statements issued that day by the company were false and misleading. Future FinTech and its executives touted Huang’s experience and leadership qualities without disclosing he was manipulating the company’s stock at that time, Duquette said.
The suit references several other statements issued by Future FinTech that allegedly omitted relevant information about the defendants’ wrongdoing. For example, in March 2021, Future FinTech and Huang filed an initial insider holdings report that did not disclose Huang already held company stock when he became CEO.
The company’s shares remained artificially inflated until earlier this year when the SEC filed a suit against Huang on Jan. 11, Duquette said. The SEC claimed Huang used an offshore account to purchase Future FinTech shares in the months leading up to his CEO appointment. After becoming CEO, Huang repeatedly failed to make required public filings with the SEC about his Future FinTech share ownership, the SEC alleged.
