Glancy Prongay & Murray LLP (GPM) announces that a class action lawsuit has been filed on behalf of investors that purchased or otherwise acquired securities of Fanhua, Inc. (Fanhua or the Company) (NASDAQ: FANH) securities between April 20, 2018 through August 27, 2018, inclusive (the Class Period). Fanhua investors have until November 6, 2018 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On August 27, 2018, stock analyst Seligman Investments published an article labeling Fanhua a questionable company and detailed a history of alleged fraud within the Company, including accounting irregularities in the Companys second quarter 2018 financial results. On this news, Fanhua’s ADS price fell $2.75 per share, or 10.52%, to close at $23.40 on August 27, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Fanhua engaged in improper business practices, including irregular accounting; (ii) the foregoing practices were intended to benefit Company insiders and overstated Fanhua’s financial assets and performance metrics; and (iii) as a result, Fanhua’s public statements were materially false and misleading at all relevant times.
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If you purchased shares of Fanhua, during the Class Period you may move the Court no later than November 6, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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