Robbins Arroyo LLP: Fanhua Inc. (FANH) Misled Shareholders According to a Recently Filed Class Action
SAN DIEGO & GUANGZHOU, China--(BUSINESS WIRE)--Sep 11, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Fanhua Inc. (NasdaqGS: FANH) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 20, 2018 and August 27, 2018. Fanhua distributes insurance products in China.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/
Fanhua Accused of Engaging in Irregular Accounting
According to the complaint, Fanhua boasted that its first quarter 2018 financial results beat expectations. Fanhua further predicted that the company would achieve positive growth in annualized life insurance premiums in 2018, while anticipating that fast growth in its renewal business would continue. On August 27, 2018, SeekingAlpha reported that Fanhua was engaging in unsustainable and questionable business practices and described a history of alleged fraud within the company. The report accused Fanhua of grossly exaggerating its number of insurance sales agents and potential for growth and noted sharp discrepancies between operating income, earnings and operating cash flows, shedding doubt on Fanhua’s reported margins. On this news, Fanhua’s ADS price fell over 10%, to close at $23.40 on August 27, 2018.
Fanhua Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20180911005813/en/
CONTACT: Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 09/11/2018 04:06 PM/DISC: 09/11/2018 04:06 PM