CNinsure Inc.

CNinsure Inc.

CNinsure Inc. Securities Settlement

The lawsuit was settled for $6.25 million in cash. The following is a summary of the proceedings in this lawsuit: ‘The Amended Class Action Complaint for Violation of the Federal Securities Laws (the Complaint) filed in the Action generally alleges, among other things, that Defendant actively misrepresented and concealed from investors that a material portion of CNinsure rapid growth and financial success was attributable to the Company alleged payment of equitable incentive compensation. The Complaint asserts that these allegedly false and misleading statements and omissions artificially inflated the price of CNinsure ADSs. The Complaint further alleges that Class Members purchased CNinsure ADSs during the Class Period at prices artificially inflated as a result of the Defendant dissemination of materially false and misleading statements. The Complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, although the Court dismissed the Section 20(a) claims.’

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