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SAN DIEGO, Feb. 23, 2021 /PRNewswire/ -- Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of shareholders of Ebix, Inc. ("Ebix" or the "Company") (NASDAQ: EBIX). The class action is on behalf of shareholders who purchased Ebix between November 9, 2020 and February 19, 2021, both dates inclusive (the "Class Period"). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than April 23, 2021.
The Ebix class action lawsuit charges Ebix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Ebix securities during the Class Period.
[click here to join this action]. There is no cost or obligation to you.
Ebix Ishares fell 39.89% on February 22, 2021, 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.
The complaint alleges that defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 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) that there was a material weakness in the Company's internal controls over the gift or prepaid revenue transaction cycle; and (3) that 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; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff will act on behalf of all other class members in directing the Ebix class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Ebix class-action lawsuit. An investor's ability to share any potential future recovery of the Ebix class action lawsuit is not dependent upon serving as lead plaintiff. If you are interested in learning more about the case, please contact Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
Additionally, you can [click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471
SOURCE Johnson Fistel, LLP