Faruqi & Faruqi, LLP Announces Investigation of CNinsure Inc.
November 18 2011 - 11:06AM
Business Wire
Faruqi & Faruqi, LLP, a national law firm concentrating on
investor rights, consumer rights and enforcement of federal
antitrust laws, is investigating potential wrongdoing at CNinsure
Inc. (“CNinsure” or the “Company”) (Nasdaq: CISG). Faruqi &
Faruqi, LLP seeks to determine whether CNinsure violated federal
securities laws in connection with statements made to the Company's
shareholders.
Request more information now by clicking here:
www.faruqilaw.com/CISG.
The investigation focuses on whether CNinsure: (1) overstated
its net income by downplaying the costs incurred from the Company’s
scorecard system; (2) failed to account for the costs incurred from
bonus incentives promised to Company agents; (3) misled investors
into believing that firms affiliated with the Company’s CEO and
Chairman, Yinan Hu (“Hu”), would buy out the Company; and (4)
lacked a reasonable basis for the Company’s positive statements
concerning the Company’s future prospects.
On May 16, 2011, CNinsure announced that it had received a
non-binding proposal letter from companies owned by Hu offering to
acquire CNinsure’s outstanding shares. In response, the price of
CNinsure’s ADSs surged 32% that day.
Then, on September 15, 2011, the Company announced the
withdrawal of Hu’s offer. In response, CNinsure’s ADS price fell
15%, closing at $9.03 per ADS, with the price dropping further over
the next two trading days, closing at $7.31 on September 19,
2011.
Take Action
If you purchased CNinsure securities between March 2, 2010 and
September 14, 2011 and you would like to discuss your legal rights,
visit www.faruqilaw.com/CISG. You can also contact us by calling
Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or
at 212-983-9330 or by sending an e-mail to avozzolo@faruqilaw.com
or rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding CNinsure’s conduct to
contact the firm, including whistleblowers, former employees,
shareholders and others.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP is a national law firm, representing
investors, consumers and companies in the prosecution of claims
under state corporate and consumer laws and the federal securities
and antitrust laws. The lawyers at Faruqi & Faruqi, LLP have
demonstrated a clear commitment to championing the rights of
shareholders and consumers nationwide.
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