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Scott+Scott Attorneys at Law LLP Announces Investigation into Fanhua, Inc. (FANH)

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Scott+Scott Attorneys at Law LLP Announces Investigation into Fanhua, Inc. (FANH)

PR Newswire

NEW YORK, Aug. 28, 2018 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national shareholder and consumer rights litigation firm, is investigating whether Fanhua, Inc. ("Fanhua" or the "Company") (NASDAQ:FANH) or certain of its officers and directors violated federal securities laws.  If you purchased Fanhua American Depository Receipts ("ADR") and have suffered a loss, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.

Fanhua is a Chinese company that resells life insurance through a commission/agency model.

On August 27, 2018, Seeking Alpha published a report on Fanhua by Seligman Investments.  The report stated that "[b]ased on due diligence of [Chinese] SAIC filings and other public information, we are deeply concerned about the company's business practices," including:

  • 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's stock fell 10.5% on August 27, 2018.

This investigation concerns whether Fanhua's filings with the U.S. Securities and Exchange Commission were misleading.

What You Can Do

If you purchased Fanhua ADR and you wish to discuss this investigation, please contact attorney Rhiana Swartz at (844) 818-6980, or at rswartz@scott-scott.com, or visit the Fanhua investigation page on our website at https://scott-scott.com/investigation/fanhua-inc/.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States.  The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

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CONTACT:
Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Ave, 17th Fl, NY, NY 10169
(844) 818-6980
rswartz@scott-scott.com 

 

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SOURCE Scott+Scott Attorneys at Law LLP

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