Faruqi & Faruqi, LLP Announces Investigation of CNinsure Inc.
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at CNinsure Inc. (“CNinsure” or the “Company”) (Nasdaq: CISG). Faruqi & Faruqi, LLP seeks to determine whether CNinsure violated federal securities laws in connection with statements made to the Company's shareholders.
The investigation focuses on whether CNinsure: (1) overstated its net income by downplaying the costs incurred from the Company’s scorecard system; (2) failed to account for the costs incurred from bonus incentives promised to Company agents; (3) misled investors into believing that firms affiliated with the Company’s CEO and Chairman, Yinan Hu (“Hu”), would buy out the Company; and (4) lacked a reasonable basis for the Company’s positive statements concerning the Company’s future prospects.
On May 16, 2011, CNinsure announced that it had received a non-binding proposal letter from companies owned by Hu offering to acquire CNinsure’s outstanding shares. In response, the price of CNinsure’s ADSs surged 32% that day.
Then, on September 15, 2011, the Company announced the withdrawal of Hu’s offer. In response, CNinsure’s ADS price fell 15%, closing at $9.03 per ADS, with the price dropping further over the next two trading days, closing at $7.31 on September 19, 2011.
If you purchased CNinsure securities between March 2, 2010 and September 14, 2011 and you would like to discuss your legal rights, contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding CNinsure’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.