NEW YORK, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights
law firm, announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the
securities of Fanhua Inc. (“Fanhua” or the “Company”) (NASDAQ: FANH) between April 20, 2018 and August 27, 2018, both dates
inclusive (the “Class Period”). The lawsuit seeks to recover Fanhua shareholders’ investment losses.
If you purchased Fanhua securities, and/or would like to discuss your legal rights and options, please
visit Fanhua Shareholder Class Action Lawsuit or contact Daniel Sadeh toll free at (877) 779-1414
or dsadeh@bernlieb.com.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or
failed to disclose that: (1) Fanhua engaged in improper business practices, including irregular accounting; (2) the foregoing
practices were intended to benefit Company insiders and overstated Fanhua’s financial assets and performance metrics; and (3) as a
result, Fanhua’s public statements were materially false and misleading at all relevant times. When the true details entered the
market, the lawsuit claims that investors suffered damages.
On August 27, 2018, Seeking Alpha published a report on Fanhua by Seligman Investments. The report
stated that “[b]ased on due diligence of SAIC filings and other public information, we are deeply concerned about the company’s
business practices,” further stating that “[o]ur concerns center on the following:
- Transferring cash to insiders via related-party transactions;
- Overstating the size of its operations;
- Acquiring companies from undisclosed related parties in suspicious transactions;
- Reporting questionable revenues and earnings, with sharply elevated receivables to a firm not disclosed as
a related party;
- Discrepancies between earnings and cash flows;
- Involvement with individuals who have been sanctioned by regulators in Hong Kong or who are linked to
companies with histories of embezzlement, de-listing, bankruptcy, or SEC prosecution;
- High dependence on questionable partners/customers, in this case ones that are a focus of regulatory
action in China.”
On this news, Fanhua stock fell $2.75 per share, or over 10%, from its previous closing price to close at $23.40
per share on August 27, 2018, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than November 6, 2018. A lead plaintiff
is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any
recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class
member.
If you purchased Fanhua securities, and/or would like to discuss your legal rights and options, please visit
https://www.bernlieb.com/cases/fanhua-inc-fanh-lawsuit-class-action-fraud-stock-78/ or contact
Daniel Sadeh toll free at (877) 779-1414 or dsadeh@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing
individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor
their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions,
the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal
500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2018 Bernstein Liebhard LLP. The law firm responsible for this advertisement is
Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome
with respect to any future matter.
Contact Information
Daniel Sadeh
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
dsadeh@bernlieb.com
