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Philadelphia, Pennsylvania--(Newsfile Corp. - April 7, 2021) - Berger Montague is investigating potential securities fraud claims against Ebix Inc. ("Ebix" or the "Company") on behalf of investors who purchased Ebix securities (NASDAQ: EBIX) between November 9, 2020 and February 19, 2021 (the "Class Period").
If you purchased Ebix securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Donnell Much at firstname.lastname@example.org or (215) 875-4667, or contact us at www.bergermontague.com/ebix.
Ebix is a supplier of infrastructure exchanges to the insurance, financial, travel, cash remittances, and healthcare industries. A recently filed lawsuit accuses the Company, its Chief Executive Officer, and Chief Financial Officer with falsely portraying Ebix's finances, operations, and internal controls.
According to the complaint, investors learned the true state of the Company on February 19, 2021, when Ebix revealed in a filing with the U.S. Securities and Exchange Commission that its independent auditor, RSM US LLP ("RSM"), had 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 Ebix's gift card business in India.
In addition, RSM had discovered a material weakness related to Ebix's failure to design controls "over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement." Lastly, Ebix and RSM disagreed over the accounting treatment of $30 million transferred into a commingled trust account of Ebix's outside legal counsel in December 2020.
Following this news, Ebix's share price fell $20.24 to close at $30.50 per share on February 22, 2021, a single-day drop of 40%.
If you purchased Ebix securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is April 23, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Ebix are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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