CNinsure Hit With Shareholder Class Action

Law360, New York (October 20, 2011, 2:58 PM EDT) -- China-based CNinsure Inc. was hit with a putative shareholder class action Monday accusing the insurance brokerage of deliberately exaggerating the company's net income by downplaying costs from sales agent commissions.

CNinsure, an agency services provider, and its top officers allegedly gave investors a deceptively rosy picture of the company's business and prospects in press releases and other statements, causing American depository shares for the company to trade at artificially inflated levels, according to the complaint in New York federal court.

And while the ADSs climbed to...
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