Plaintiff's law firm issued a press release on September 7, 2018, announcing the filing of the lawsuit. According to the press release, Fanhua, Inc. (formerly known as “CNinsure Inc.”) is a leading independent online-to-offline financial services provider. Through its online platforms and offline sales and service network, Fanhua offers a wide variety of life, property and casualty insurance products, and provides insurance claims adjusting services.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations 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.

On December 13, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on February 21, 2019. Defendants filed a Motion to Dismiss the amended Complaint on April 1. On March 2, 2020, the Court issued an Order dismissing with prejudice all but one of the claims in the amended Complaint. Plaintiff was given leave to amend the Complaint. Plaintiff did not amend the Complaint, and on March 12 the Court dismissed the case.