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SAN FRANCISCO, CA / ACCESSWIRE / April 20, 2021 / The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Ebix, Inc. ("Ebix" or the "Company") (NASDAQ:EBIX) between November 9, 2020 and February 19, 2021, inclusive (the "Class Period").
If you purchased or otherwise acquired Ebix securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 23, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Ebix investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Ebix Securities Class Litigation
Ebix, headquartered in Johns Creek, Georgia, supplies infrastructure exchanges to the insurance, financial, travel, cash remittances, and healthcare industries. The action alleges that, during the Class Period, defendants made materially false and/or misleading statements and failed to disclose to investors that (1) there was insufficient audit evidence to determine the business purpose of certain transactions in Ebix's gift card business in India during the fourth quarter of 2020; (2) there was a material weakness in Ebix's internal controls over the gift or prepaid revenue transaction cycle; and (3) Ebix's independent auditor was likely to resign over disagreements with the Company over $30 million that had been transferred into a commingled trust account of Ebix's outside legal counsel.
On February 19, 2021, following the close of the market, Ebix announced the sudden resignation of its independent auditor, RSM US LLP ("RSM"), which had been "unable, despite repeated inquiries, 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." These "significant unusual transactions" were connected to Ebix's gift card business in India which was a critical part of Ebix's portfolio. In addition, RSM disclosed that "management did not design or implement the necessary procedures and controls over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement." The Company and RSM also allegedly disagreed over whether to classify $30 million that had been transferred into a commingled trust account of Ebix's outside legal counsel in December 2020 as cash on Ebix's balance sheet. On this news, Ebix's stock price fell $20.24 per share, or approximately 40%, from its closing price of $50.74 on February 21, 2021, to close at $30.50 on February 22, 2021, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm's "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs' Firms in America."
For more information about Lieff Cabraser and the firm's representation of investors, please visit https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
SOURCE: Lieff Cabraser Heimann & Bernstein, LLP
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