NEW YORK, Sept. 12, 2018 /PRNewswire/ -- 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.
ATTORNEY ADVERTISING. © 2018 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Daniel Sadeh
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
dsadeh@bernlieb.com
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SOURCE Bernstein Liebhard LLP