Investors Sue Webull Financial for Up To $5,000,000 Over Pump and Dump Losses Involving Third-Party Hacker That Accessed Their Brokerage Accounts
Our Broker-Dealer Negligence Lawyers Are Representing These Three Claimants in Their FINRA Lawsuit
Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing more Claimants in suing Webull Financial over losses they sustained after an unknown party managed to hack into their accounts and defraud them in an alleged pump and dump scam involving the newly issued foreign penny stock of Ten-League International Holdings Ltd. (TLIH). The three investors are suing Webull for up to $5,000,000 in damages.
In their broker negligence lawsuit, the Claimants are accusing Webull Financial of having woefully deficient security protocols that enabled this hacker to access their accounts, liquidate their holdings, and use the proceeds to buy hundreds of thousands of TLIH shares.
This purportedly artificially raised the stock’s price while the unknown party allegedly liquidated their own position. The price of the penny stock then collapsed, leaving the investors with serious losses.
In their FINRA lawsuit, our clients are claiming misrepresentations and omissions, negligence, gross negligence, breach of fiduciary duty, breach of contract, violation of California’s elder abuse statute, unjust enrichment, and more.
Brokerage firms have a duty to protect customers’ accounts and money, as well as supervise these accounts to prevent hackers and illegal stock manipulation scams from happening. We believe that other Webull customers suffered similar losses in this alleged pump-and-dump fraud. This includes a California couple we are also representing in their six-figure investor lawsuit against Webull Financial.
What Is Ten-League International Holdings?
This was a newly issued stock of a Singaporean equipment company that started trading on July 8, 2025. It had an average volume of less than 700,000 shares traded daily. On July 23, 2005, the day before the breach at Webull, 228,500 shares were traded. Presumably, the hacker had acquired a substantial number of shares by then.
Nearly 4 million and 7 million shares were purchased on July 24 and 25, respectively. The Hacker liquidated their shares, and by the end of the day on July 24, the stock had collapsed to $1.60/share. TLIH ‘s share price is now down to 60 cents.
Webull Denies Any Liability for TLIH Pump and Dump Losses
Nearly a month after this debacle, Webull sent our clients a form letter telling them they had fallen for a phishing scam that allowed the hacker to gain access to their accounts—as if the investors were to blame for falling victim to this crime rather than the brokerage firm’s negligence. Webull also rejected any claims by the customers.
Unfortunately, brokerage firms would rather deny wrongdoing, even blame their customers for investment losses, especially in instances where more claims over the same matter might be forthcoming. Shepherd Smith Edwards and Kantas represents investors who have suffered losses because of due diligence failures, breach of fiduciary duty, supervisory failures, lax security measures, and more by broker-dealers.
Contact Our Securities Fraud Law Firm
Shepherd Smith Edwards and Kantas Securities Fraud Law Firm has represented thousands of investors against broker-dealers. We have secured a collective many millions of dollars for more than 90% of our clients in arbitration, mediation, and litigation. We offer experienced securities representation and customized attention.
Call our Securities Fraud Law Firm at (800) 259-9010 or fill out this online form.