The litigation, filed in the U.S. District Court for the Middle District of Florida, claims Webull executives maintained a facade of domestic operations while significant software development and data routing functions remained tethered to China. These allegations gained traction following a report from the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, which identified a major discrepancy between the company’s public narrative and its internal reality.

According to the committee’s findings, Webull’s workforce in mainland China accounted for roughly 62% of its total global staff, contradicting previous assertions that the company lacked a significant physical footprint in the region. Following the disclosure of these findings on October 7, 2026, the company’s share price dropped 19%. The law firm Robbins Geller Rudman & Dowd LLP is currently seeking lead plaintiffs who suffered substantial losses to represent the class in the case captioned Ward v. Webull Corporation.