Gilman Law’s Naples, Florida Office Investigates Lawsuit Against CNinsure, Inc.
Gilman Law LLP, a leading national securities law firm located in Naples, Florida, is actively investigating shareholder allegations that CNinsure, Inc. (“CNinsure”) and certain of its officers and directors violated the Securities Exchange Act 1940. CNinsure, together with its subsidiaries, provides insurance brokerage and agency services, and insurance claims adjusting services in the People’s Republic of China.
For over 40 years, the Naples, Florida lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The Naples Florida securities lawyers focus on cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired American Depositary Shares (“ADSs”) of CNinsure, Inc. (NASDAQ: CISG) between March 2, 2010 and September 14, 2011 and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than December 16, 2011to discuss your rights, including as to recovery of your losses or to obtain additional information. The firm is currently offering free legal evaluations to all Florida CNinsure investors, including those in the Naples, Orlando, Miami, Jacksonville and Tampa areas.
Failure to Disclose Information
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. The Complaint alleges that CNinsure issued materially false and misleading statements regarding the Company’s business and prospects during the Class Period. CNinsure allegedly failed to disclose that the Company was materially overstating its net income by understating the costs associated with the Company’s scorecard system. The suit further alleges that 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, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
Artificially Inflated Stock Prices
CNinsure’s misleading financial data in combination with its failure to properly disclose the costs associated with the Company’s scorecard system, lead to artificially inflated prices during the Class Period. In addition, on 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 further inflated the price of CNinsure’s ADS. Then 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.
As a result of this news, shares of CNinsure fells $1.64 per ADS or 15%, to close at $9.03 per ADS.
Gilman Law’s Naples, Florida Lawyers have extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law’s Naples, Florida office has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of CNinsure’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please complete the form above or CALL TOLL FREE (888) 252-0048.
The firm is currently offering free legal evaluations to all Florida CNinsure investors, including those in the Naples, Orlando, Miami, Jacksonville and Tampa areas.