Lead Plaintiff Deadline is November 6, 2018
NEW YORK, — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Fanhua, Inc. (“Fanhua” or the “Company”) (NASDAQ: FANH) on behalf of purchasers of Fanhua American Depositary Receipts (“ADR’s”) between April 20, 2018 and August 27, 2018, inclusive (“Class Period”).
Investors who have incurred losses in the ADR’s of Fanhua, Inc. are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the ADR’s of Fanhua, Inc., you may, no later than November 6, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Fanhua, Inc.
Fanhua (formerly known as CNinsure Inc.) operates an independent insurance agency and brokerage company. The Company provides wealth management, property, casualty, and life products, as well as consumer finance, insurance claims adjusting services, such as damage assessments, surveys, authentications and loss estimations.
The filed complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies; specifically:
- Fanhua engaged in improper business practices, including irregular accounting;
- the foregoing practices were intended to benefit Company insiders and overstated Fanhua’s financial assets and performance metrics; and
- as a result, Fanhua’s public statements were materially false and misleading at all relevant times.
On August 27, 2018, Seligman Investments published an article that described Fanhua as a “questionable company” and detailed a history of alleged fraud within the Company, including accounting irregularities in the Company’s second quarter 2018 financial results. The article also described “company insiders” engaging in “self-dealing tactics,” and stated that Fanhua’s “numerous acquisitions, mostly of other insurance intermediaries . . . are rife with related-party abuses.”
On this news, the price of Fanhua ADR’s fell $2.75 per share, or 10.52%, to close at $23.40 on August 27, 2018.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
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