Robbins Arroyo LLP: Fanhua Inc. (FANH) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm
Robbins Arroyo LLP announces that purchasers of Fanhua Inc. (NasdaqGS: FANH) have filed a class action complaint against the
company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 20, 2018 and August
27, 2018. Fanhua distributes insurance products in China.
View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/fanhua-inc/
Fanhua Accused of Engaging in Irregular Accounting
According to the complaint, Fanhua boasted that its first quarter 2018 financial results beat expectations. Fanhua further
predicted that the company would achieve positive growth in annualized life insurance premiums in 2018, while anticipating that
fast growth in its renewal business would continue. On August 27, 2018, SeekingAlpha reported that Fanhua was engaging in
unsustainable and questionable business practices and described a history of alleged fraud within the company. The report accused
Fanhua of grossly exaggerating its number of insurance sales agents and potential for growth and noted sharp discrepancies between
operating income, earnings and operating cash flows, shedding doubt on Fanhua's reported margins. On this news, Fanhua's ADS price
fell over 10%, to close at $23.40 on August 27, 2018.
Fanhua Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid
Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service,
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Robbins Arroyo LLP
Leonid Kandinov
(619) 525-3990 or Toll Free (800) 350-6003
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180911005813/en/