Company: Fanhua, Inc.
Class Period: April 20, 2018 — August 27, 2018
Court: U.S.D.C. – Southern District of New York
Deadline: November 6, 2018
Kaskela Law LLC announces that an investor class action lawsuit has been filed against Fanhua, Inc. (NASDAQ: FANH) (“Fanhua” or the “Company”) on behalf of purchasers of the Company’s securities between April 20, 2018 through August 27, 2018, inclusive (the “Class Period”).
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. On this news, Fanhua’s share price fell $2.75 per share, or 10.52%, to close at $23.40 on August 27, 2018.
The class action complaint alleges that defendants made a series of false and misleading statements during the Class Period and failed to disclose to investors that: (i) Fanhua was engaged in improper business practices, including irregular accounting; and (ii) the foregoing practices were intended to benefit Company insiders and overstated Fanhua’s financial assets and performance metrics. The complaint further alleges that, as a result of the foregoing, investors purchased Fanhua’s securities at artificially inflated prices during the Class Period, and have suffered financial damages as a result of defendants’ conduct.
IMPORTANT DEADLINE: Investors who purchased Fanhua’s securities during the Class Period may, no later than November 6, 2018, seek to be appointed as a lead plaintiff representative of the class.
Investors who purchased the Company’s securities during the Class Period and suffered a financial loss are encouraged to complete the information form on this page, or to contact Kaskela Law at (888) 715 – 1740 to discuss their important legal rights and recovery options.