GUANGZHOU, China, April 8, 2014 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that the United States District Court for the Southern District of New York (the "Court") has preliminarily approved the proposed agreement to settle a class action lawsuit against the Company that was initially filed on October 17, 2011 and later consolidated on August 13, 2012. The claim against several officers of the Company was previously dismissed on June 24, 2013.
Under the terms of the proposed agreement, which is subject to final approval by the Court and class notice administration, the Company has agreed to pay $6.625 million to the settlement fund to resolve all claims asserted on behalf of purchasers of its American depository shares during the period from March 2, 2010 through and including November 21, 2011. The payments will be covered by the Company's director and officer liability and company reimbursement insurance.
The proposed settlement agreement contains no admission of liability, fault or wrongdoing by the Company. The Company denies any and all of the allegations made against it by the class in the litigation and has agreed to settle this matter solely to eliminate the uncertainties, risks, costs and burdens of further protracted proceedings. The settlement agreement should not be construed as an admission by the Company or any of its directors or officers with respect to any claim of fault, liability, wrongdoing or damage."We believe the settlement is in the best interest of the Company and our shareholders as it avoids unnecessary expenses and distractions from a time-consuming litigation process," said Mr. Chunlin Wang, CNinsure's chief executive officer. "We are pleased to put this matter behind us so that we can focus on the development of our business going forward."