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.
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Contact Information
Daniel Sadeh
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
dsadeh@bernlieb.com