OAKLAND, Calif.--(BUSINESS WIRE)--Ebix Inc. shares fell as much as 27% after the market closed on Friday, February 19, 2021 and a proposed class action lawsuit has now been filed. Ebix’s share price plunged following the disclosure that its independent auditor, RSM US LLP (“RSM”), resigned. RMS stated in a letter that it was resigning over concerns with Ebix’s gift card business in India. Gibbs Law Group is investigating a potential Ebix Inc. Class Action Lawsuit on behalf of investors who lost money in Ebix (NASDAQ:EBIX).
To speak with an attorney regarding this class action lawsuit investigation, Click Here or call (888) 410-2925.
On Friday, February 22, 2021, Ebix’s independent auditor RSM issued a letter stating that it was resigning over its inability to obtain “sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020.” In addition, RSM stated that there was a material weakness related to Ebix’s failure to design controls to “prevent or detect a material misstatement." Ebix and RSM also disagreed over the accounting treatment of $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel in December 2020.
On this news, Ebix’s share price fell as much as 27% during after-hours trading on Friday, February 19, 2021 and continued to drop as much as 40% on Monday, February 22, 2021, thereby harming investors.
What Should Ebix, Inc. Investors Do?
If you invested in Ebix, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Ebix, Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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