CNinsure Announces Agreement to Settle Securities Class Action
April 08 2014 - 8:36AM
CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a
leading independent insurance intermediary company operating in
China, today announced that the United States District Court for
the Southern District of New York (the "Court") has preliminarily
approved the proposed agreement to settle a class action lawsuit
against the Company that was initially filed on October 17, 2011
and later consolidated on August 13, 2012. The claim against
several officers of the Company was previously dismissed on June
24, 2013.
Under the terms of the proposed agreement, which is subject to
final approval by the Court and class notice administration, the
Company has agreed to pay $6.625 million to the settlement fund to
resolve all claims asserted on behalf of purchasers of its American
depository shares during the period from March 2, 2010 through and
including November 21, 2011. The payments will be covered by the
Company's director and officer liability and company reimbursement
insurance.
The proposed settlement agreement contains no admission of
liability, fault or wrongdoing by the Company. The Company denies
any and all of the allegations made against it by the class in the
litigation and has agreed to settle this matter solely to eliminate
the uncertainties, risks, costs and burdens of further protracted
proceedings. The settlement agreement should not be construed as an
admission by the Company or any of its directors or officers with
respect to any claim of fault, liability, wrongdoing or damage.
"We believe the settlement is in the best interest of the
Company and our shareholders as it avoids unnecessary expenses and
distractions from a time-consuming litigation process," said Mr.
Chunlin Wang, CNinsure's chief executive officer. "We are pleased
to put this matter behind us so that we can focus on the
development of our business going forward."
About CNinsure Inc.
CNinsure is a leading independent intermediary company operating
in China. CNinsure's distribution network reaches many of China's
most economically developed regions and affluent cities. The
Company distributes a wide variety of property and casualty and
life insurance products underwritten by domestic and foreign
insurance companies operating in China, and provides insurance
claims adjusting as well as other insurance-related services.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward- looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about CNinsure and the industry.
Potential risks and uncertainties include, but are not limited to,
those relating to CNinsure's limited operating history, especially
its limited experience in selling life insurance products, its
ability to attract and retain productive agents, especially
entrepreneurial agents, its ability to maintain existing and
develop new business relationships with insurance companies, its
ability to execute its growth strategy, its ability to adapt to the
evolving regulatory environment in the Chinese insurance industry,
its ability to compete effectively against its competitors, and
macroeconomic conditions in China and their potential impact on the
sales of insurance products. All information provided in this press
release is as of the date hereof, and CNinsure undertakes no
obligation to update any forward-looking statements. Although
CNinsure believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that its expectations will turn out to be correct, and investors
are cautioned that actual results may differ materially from the
anticipated results. Further information regarding risks and
uncertainties faced by CNinsure is included in CNinsure's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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