Cases
Fanhua Inc. (FANH)
Securities Class Action
Overview
Overview
- Date:
- 9/10/2018
- Company Name:
- Fanhua Inc.
- Stock Symbol:
- FANH
- Class Period:
- FROM 4/20/2018 TO 8/27/2018
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Southern District of New York
NEW YORK, September 10, 2018 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Fanhua Inc. (FANH) securities between April 20, 2018 and August 27, 2018 (the “Class Period”). Investors have until November 6, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the company’s business, operational, and compliance policies. Specifically, 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.
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 asserted that Fanhua’s “numerous acquisitions, mostly of other insurance intermediaries . . . are rife with related-party abuses.”
On this news, Fanhua’s ADS price fell by more than 10%, to close at $23.40 on August 27, 2018.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the company’s business, operational, and compliance policies. Specifically, 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.
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 asserted that Fanhua’s “numerous acquisitions, mostly of other insurance intermediaries . . . are rife with related-party abuses.”
On this news, Fanhua’s ADS price fell by more than 10%, to close at $23.40 on August 27, 2018.