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Scott+Scott Attorneys at Law LLP Alerts Investors to the Filing of Securities Class Action Against Fanhua, Inc. (FANH)

AIFU

PR Newswire

NEW YORK, Sept. 11, 2018 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national shareholder and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Fanhua, Inc. ("Fanhua" or the "Company") (NASDAQ: FANH) and other defendants, related to alleged violations of federal securities laws.  If you purchased Fanhua securities between April 20, 2018 and August 27, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.

Fanhua (formerly known as CNinsure Inc.) is an independent financial services provider operating in China.

The complaint alleges that Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies; specifically: (i) Fanhua engaged in improper business practices, including irregular accounting; (ii) the foregoing practices were intended to benefit Company insiders and overstated Fanhua's financial assets and performance metrics; and (iii) as a result, Fanhua's public statements were materially false and misleading at all relevant times.

On August 27, 2018, stock analyst 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 American Depository Shares fell $2.75 per share, or 10.52%, to close at $23.40 on August 27, 2018

What You Can Do

If you purchased Fanhua securities between April 20, 2018 and August 27, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at rswartz@scott-scott.com.  The lead plaintiff deadline is November 8, 2018.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States.  The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

Attorney Advertising

CONTACT:

Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Ave, 17th Fl, NY, NY 10169
(844) 818-6980
rswartz@scott-scott.com 

 

Cision View original content:http://www.prnewswire.com/news-releases/scottscott-attorneys-at-law-llp-alerts-investors-to-the-filing-of-securities-class-action-against-fanhua-inc-fanh-300710468.html

SOURCE Scott+Scott Attorneys at Law LLP