CNinsure Inc. (NASDAQ: CISG) shareholder litigation in connection with alleged securities fraud
Levi & Korsinsky announces that 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 Inc. (“CNinsure” or the “Company”) (NASDAQ: CISG) American Depositary Shares between March 2, 2010 and September 14, 2011 (the “Class Period”).
The complaint alleges that CNinsure and certain of its officers and directors issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose that: (a) the Company was materially overstating its net income by understating the costs associated with the Company’s scorecard system; (b) 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; and (c) as a result of the aforementioned, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
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.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.