Anything On the Conference Call About Short Attack?
I do not have time to now listen to the conference call. I was wondering whether there was anything said about the short attack and the negative articles, allegations of money laundering, tax fraud, etc., and/or any governmental investigations? I suspect not, but I was just curious.
No not really. They said high ethical standards were important and that they would get to the root of any problems and fix them. Software companies, particularly acquisitive ones have lots of areas where fraud can arise even with management not being aware of them. If a salesperson reaches a side agreement with a customer and doesn't tell management it can be difficult. I recently purchased some software from a very well-known and reputable firm where I asked a very specific and direct question interpreting a provision of the contract of the salesman and demanded that the response be written. Did the salesman provide that interpretation to his managers, would it be enforceable in a court of law? I don't know. All companies of a certain size regularly have fraud of some kind going on, just a question of how significant and whether top management (who are imperfect people) were a part of it and how significant was the problem.
Not exactly. Raina said that Ebix will take care of the root of the problem in connection to clearing Ebix's good name. That root? The shorts and their hit pieces. The statement had nothing to do with their ongoing business or internal problems.
As for you, the company has to ibide by the contract that their salesman has written even if he was not authorized to do so. They have legal and a moral obligation to abide by the terms, even oral terms in most cases.