The company would pay $6.625m, which will be covered by insurance proceeds, to resolve all the claims asserted on behalf of purchasers of its American depository shares between March 2, 2010 and November 21, 2011.
CNinsure said the settlement agreement contains no admission of liability, fault or wrongdoing by the company.
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Denying the allegations made against it by the class in the litigation, the company has agreed to settle this matter solely to eliminate the uncertainties, risks, costs and burdens of further protracted proceedings.
CNinsure CEO Chunlin Wang CEO said: "We are pleased to have this matter resolved and behind us, so that we can now focus on executing our strategies for delivering strong financial results and creating value for our shareholders over the long run."
Operating as an independent insurance intermediary firm, CNinsure delivers an array of property and casualty (P&C) and life insurance products underwritten by domestic and foreign insurance companies operating in China.
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