Fanhua Inc. (NASDAQ: FANH) Investor Investigation Over Possible Violations Of Securities Laws Announced

Investors who purchased shares of Fanhua Inc. (NASDAQ: FANH), have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Fanhua
Affected Securities: 
NASDAQ: FANH

An investigation on behalf of investors of Fanhua Inc. (NASDAQ: FANH) shares over potential securities laws violations by Fanhua Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Fanhua Inc. (NASDAQ: FANH) concerning whether a series of statements by Fanhua Inc. (regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

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.