Fanhua Inc. (NASDAQ: FANH) Investor Securities Class Action Lawsuit 09/07/2018

If you purchased shares of Fanhua Inc. (NASDAQ: FANH), you have certain options and for certain investors are short and strict deadlines running. Deadline: November 6, 2018. NASDAQ: FANH investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Case Name: 
Fanhua Shareholder Class Action Lawsuit 09/07/2018
Case Status: 
Lawsuit Filed
Case Status: 
Case Dismissed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 

March 2, 2020 - the Court issued an Order dismissing with prejudice all but one of the claims in the amended Complaint. Plaintiff was given leave to amend the Complaint. Plaintiff did not amend the Complaint, and on March 12 the Court dismissed the case.

April, 2, 2019 - The defendants filed their motion to dismiss the case.

February 21, 2019 - An amended complaint was filed

September 7, 2018 - An investor in shares of Fanhua Inc. (NASDAQ: FANH) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Fanhua Inc, formerly known as CNinsure Inc, in connection with certain allegedly false and misleading statements made between April 20, 2018 and August 27, 2018.

China based Fanhua Inc. distributes insurance products in China. It operates through two segments, Insurance Agency and Claims Adjusting. Fanhua Inc. reported that its annual Total Revenue rose from over 4.082 billion CNY in 2016 to over 4.088 billion CNY in 2017 and that its Net Income increased from157.04 million CNY in 2016 to 449.22 million in CNY in 2017.

Shares of Fanhua Inc. (NASDAQ: FANH) rose to as high as $36.04 per share in June 2018.

On August 27, 2018, Seeking Alpha published a report on Fanhua by Seligman Investments
The report labeled 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 report stated that it was “deeply concerned about the company’s business practices[,]” including its history of alleged fraud, the transferal of cash to insiders via related-party transactions, accounting discrepancies and questionable revenues and earnings.

Shares of Fanhua Inc. (NASDAQ: FANH) declined on August 27 2018 to as low as $21.90 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Fanhua Inc. (NASDAQ: FANH) common shares between April 20, 2018 and August 27, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between April 20, 2018 and August 27, 2018, the Defendants made false and/or misleading statements and/or failed to disclose that Fanhua engaged in improper business practices, including irregular accounting, that the foregoing practices were intended to benefit Company insiders and overstated Fanhua’s financial assets and performance metrics, and that as a result, Fanhua’s public statements were materially false and misleading at all relevant times.