trending Market Intelligence /marketintelligence/en/news-insights/trending/yr6taljg1rke49wq-f6skw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Fanhua facing fraud complaint

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report


Fintech Funding Flows To Insurtech In February

Fanhua facing fraud complaint

China-based Fanhua Inc. is facing a class-action complaint for allegedly engaging in fraudulent activities.

The company allegedly did not properly disclose improper business practices, including irregular accounting, from April 20 to Aug. 27.

Investors suffered damages from Fanhua's lack of proper disclosure, which was allegedly done to benefit company "insiders" and overstate financial assets and performance metrics. Fanhua must pay damages to affected investors, according to the complaint.

In August, Fanhua rejected allegations of fraudulent activities such as transferring cash to insiders through related-party transactions.

Fanhua CEO Chunlin Wang and CFO Peng Ge were also named as defendants in the complaint filed in the U.S. District Court for the Southern District of New York.

A company spokesperson told S&P Global Market Intelligence that the complaint's allegations are "groundless" and that Fanhua plans to defend itself "vigorously."