Lawsuit Overview
Settlement Overview
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August 15, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
April 7, 2014 - The court preliminarily approved the settlement.
March 19, 2014 - Parties filed a stipulation of settlement.
June 24, 2013 - The court denied the defendants' motion to dismiss.
October 1, 2012 - The defendants filed a motion to dismiss.
August 13, 2012 - The lead plaintiffs filed an amended complaint.
June 26, 2012 - The lead plaintiffs and lead counsel were appointed.
December 16, 2011 - A lead plaintiff motion was filed.
October 17, 2011 - An investor in American Depositary Shares (ADS) of CNinsure Inc (NASDAQ: CISG) filed a lawsuit in the U.S. District Court for the Southern District of New York against CNinsure Inc over alleged violations of Federal Securities Laws.
According to the complaint the plaintiff alleges on behalf of purchasers of CNinsure Inc (NASDAQ: CISG) ADS during the period between March 2, 2010 and September 14, 2011, that CNinsure Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company’s business and prospects.
On December 2 2010 Analyst Adele L. Mao at OLP Global LLC, an alternative research and consulting firm, issued a report with the title: “CNInsure (CISG) - Equity Incentives Likely Unaccounted For, Overstating Profits”. In the report analyst Mao said that even though CNInsure management denied during its 3Q10 earnings call that their so called “scorecard” program implemented to incentivize sales agents is an equity incentive plan, OLP Global uncovered more facts about the CNInsure’s so-called “scorecard” program, that they are convinced that it is no different from an equity-based compensation plan.
Shares of CNinsure Inc (NASDAQ: CISG) fell from $22.10 to $15.43 on December 2, 2010.
CNinsure Inc issued a statement saying that it reiterated that the so-called share incentive certificate of CNinsure Inc is nothing but scorecard for points. CNinsure Inc said it has never published any presentation on share incentive certificate and any publication that describes CNinsure Inc's scorecard system as share incentive is not in conformity with fact. Further CNinsure Inc said Finestart is an affiliated entity of Chengdu Jingshi Investment Co., Ltd. and Finestart does not have any interest or economic ties with CNinsure Inc.
On March 1, 2011, CNinsure Inc announced its Fourth Quarter and Fiscal Year 2010 Unaudited Financial Results. Among other things, CNinsure Inc reported an increase in total operating costs and expenses and an increase in share-based compensation expenses for the same quarter in 2009.
CNinsure Inc ADS fell $1.96 per ADS to close at $15.92 per ADS on March 2, 2011.
On May 16, 2011, CNinsure Inc announced that it received a preliminary non-binding proposal letter from a company controlled by defendant Yinan Hu, a co-founder of CNinsure Inc and its Chairman and Chief Executive Officer, and entities affiliated with him to acquire all of the outstanding shares of CNinsure Inc for $19.00.
Then, on September 15, 2011, CNinsure Inc issued a press release announcing that the Special Committee of its Board of Directors received a notice from Yinan Hu and companies affiliated with him that they have unanimously determined to withdraw the non-binding going private proposal dated May 14, 2011.
CNinsure Inc ADSs fell $1.64 per ADS, or 15%, to close at $9.03 per ADS on September 15, 2011. NASDAQ: CISG stock continued to decline to as low as $6.01 on October 11, 2011.