SAN FRANCISCO, March 15, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Ebix, Inc. (NASDAQ: EBIX) investors with significant losses to submit your losses now.
Class Period: Nov. 9, 2020 – Feb. 19, 2021
Lead Plaintiff Deadline: April 23, 2021
Visit: www.hbsslaw.com/investor-fraud/EBIX
Contact An Attorney Now: EBIX@hbsslaw.com
844-916-0895
Ebix, Inc. (EBIX) Securities Fraud Class Action:
The complaint alleges that, throughout the Class Period, Defendants misrepresented and concealed that: (1) there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India during 4Q 2020; (2) that there was a material weakness in Company’s internal controls over the gift or prepaid revenue transaction cycle; and (3) that the Company’s independent auditor, RSM, was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel.
Investors allegedly began to learn the truth on Feb. 19, 2021 when RSM abruptly resigned, stating that that “despite repeated inquiries” RSM was unable to obtain sufficient audit evidence to “evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020, including whether such transactions have been properly accounted for and disclosed in the financial statements subject to the Audit.” These “unusual transactions” concerned the company’s gift card business in India.
In addition, RSM and Ebix reportedly disagreed over whether $30 million transferred to a comingled trust account of Ebix’s outside counsel should still be classified as cash on Ebix’s balance sheet, even though those funds were outside Ebix’s direct control.
On this news, the Company’s share price fell as much as $20.24, or 40%, in a single trading day.
Most recently, on Mar. 8, 2021, Ebix announced it has retained KG Somani & Co. as its new auditor, that it would not file its annual report until Apr. 20, 2021, and that Board-appointed consultants and outside legal counsel are continuing “to evaluate the payment solutions business.”
“We’re focused on investors’ losses and proving Ebix insiders cooked the company’s books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Ebix shares and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ebix should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EBIX@hbsslaw.com.
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895