Lawsuit filed for Investors in shares of Ebix, Inc. (NASDAQ: EBIX) over alleged Securities Laws Violations

An investor, who purchased shares of Ebix, Inc. (NASDAQ: EBIX), filed a lawsuit over alleged violations of Federal Securities Laws by Ebix, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Ebix, Inc. (NASDAQ: EBIX) have certain options and for certain investors are short and strict deadlines running. Deadline: April 23, 2021. ENASDAQ: EBIX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Johns Creek, GA based Ebix, Inc. provides software and e-commerce solutions to insurance, finance, healthcare, and e-learning industries.

On February 19, 2021, after the market closed, Ebix, Inc. (NASDAQ: EBIX) revealed that its independent auditor, RSM US LLP ("RSM"), 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 that occurred in the fourth quarter of 2020" related to the Company’s gift card business in India. RSM had also stated that there was 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." In addition, Ebix and RSM 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.

Shares of Ebix, Inc. (NASDAQ: EBIX) declined from $64.14 per share on January 27, 2021, to as low as $22.72 per share on February 23, 2021.

The plaintiff claims that between November 9, 2020 and February 19, 2021, the Defendants failed to disclose to investors 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, that there was a material weakness in the Company’s internal controls over the gift or prepaid revenue transaction cycl, 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 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.

Those who purchased shares of Ebix, Inc. (NASDAQ: EBIX) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.