Gilman Law LLP, a leading national securities law firm, is now accepting claims for lawsuits on behalf of CNinsure, Inc. shareholders. The firm is actively investigating shareholder claims that CNinsure, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing potentially misleading statements between March 2, 2010 and September 14, 2011. The firm is currently offering free legal evaluations to all CNinsure, Inc. investors nationwide.
For over 30 years, Gilman Law has represented investors in all major aspects of securities fraud litigation, including stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired CNinsure, Inc. (CNinsure, Inc) American Depository Shares (“ADSs”) during the period between March 2, 2010 and September 14, 2011, and either lost money on the transaction or still hold the shares, you must contact Gilman Law LLP no later than December 16, 2011 in order to exercise your legal rights against CNinsure, Inc.
CNinsure, Inc. Class Action Lawsuit Allegations
CNinsure and its subsidiaries provide insurance brokerage and agency services, as well as insurance claims adjusting services, in the People’s Republic of China. On December 2, 2010, an analyst report by OLP Global LLC claimed that the Company may have understated commission expenses and overstated net income as a result of the way the Company incentivizes its agents. In reaction to the report, the price of CNinsure American Depositary Shares fell more than 20 percent.
Om May 16, 2011, the Company announced that it received a preliminary non-binding proposal letter from a company controlled by Yinan Hu, a co-founder of CNinsure and its Chairman and Chief Executive Officer, to acquire all of the outstanding shares of the Company for $19.00 per ADS, which inflated the price of CNinsure’s ADS. However, on September 15, 2011, CNinsure issued a press release announcing that the Special Committee of its Board of Directors received a withdrawal notice from Yinan Hu concerning the proposed acquisition. This news caused shares of CNinsure to fall $1.64 per ADS or 15%, to close at $9.03 per ADS.
Since then, a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of CNinsure ADSs. According to the complaint, CNinsurance and other Defendants failed to disclose adverse information, including:
The Company was materially overstating its net income by understating the costs associated with the Company’s scorecard system;
The Company failed to account for incentives provided to the Company’s agents as costs since those incentives were reasonably likely to be tendered at a future date;
As a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
As a result of Defendants’ alleged false statements, it is claimed that CNinsure’s stock traded at artificially inflated prices during the Class Period.
Legal Help for CNinsure, Inc. Shareholders
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits, and has recovered over a billion dollars for its clients. We are ready to assist investors who have sustained losses as a result of CNinsure, Inc.’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.
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