NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) and certain of its officers, alleging violations of federal securities laws. If you purchased Ebix shares between November 9, 2020 and February 19, 2021, inclusive (the “Class Period”), and have suffered a loss, you are encouraged to contact Rhiana Swartz for additional information at (844) 818-6980 or email@example.com.
Ebix supplies infrastructure exchanges to the insurance, financial, travel, cash, and healthcare industries.
The lawsuit alleges, among other things, that the Company made materially false and/or misleading statements and/or failed to disclose 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 the fourth quarter of 2020; (2) there was a material weakness in Company's internal controls over the gift or prepaid revenue transaction cycle; and (3) the Company's independent auditor 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.
On February 19, 2021, despite Ebix’s prior statements touting the effectiveness of its financial disclosure controls and procedures, the Company revealed that its independent auditor, RSM US LLP (“RSM”), resigned “as a result of being unable, despite repeated inquiries, to obtain sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions” related to the Company’s gift card business in India. RSM also stated in its letter that it believed that the Company’s “internal control over financial reporting was not effective as of December 31, 2020 due to the identification of a material weakness.”
On this news, the Company’s share price fell approximately 40% to close at $30.50 on February 22, 2021, down from its previous close price of $50.74.
What You Can Do
If you purchased Ebix securities between November 9, 2020 and February 16, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or firstname.lastname@example.org. The lead plaintiff deadline is April 23, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.