EBIX CLASS ACTION NOTICE: Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against Ebix, Inc.
THE ANGEL–(BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the US District Court for the Southern Borough of New York entitled Teifke v Ebix, Inc., et al. (Case # 1: 21-cv-01589) on behalf of any person or entity who between November 9, 2020 and February 19, 2020, has securities of Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) purchased or otherwise acquired in 2021, inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Ebix investment or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, you can find your contact information at https://www.glancylaw.com/cases / submit to ebix-inc /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at Shareholder@glancylaw.com or on our website at www.glancylaw.com for more information about your rights.
On February 19, 2021, after the market closed, Ebix announced that its independent auditor, RSM US LLP (“RSM”), had resigned “because, despite repeated investigations, he was unable to obtain sufficient appropriate audit evidence which would allow for the Business Purpose Assessment of Significant Unusual Transactions in Q4 2020 “related to the Company’s gift card business in India. RSM had also noted that there was a major weakness related to Ebix’s failure to design controls “over the transaction cycle of gift or prepaid card receipts sufficient to prevent or detect material misstatement.” Additionally, Ebix and RSM disagreed on accounting for $ 30 million that had been transferred to a mixed escrow account held by Ebix’s outside legal advisor in December 2020.
In that news, the company’s stock price fell as high as $ 20.24, or approximately 40%, and closed at $ 30.50 on February 22, 2021 with an unusually high trading volume.
Throughout the class, Defendants made materially false and / or misleading statements and did not disclose any material adverse facts about the company’s business, business, or prospects. Specifically, Defendants have failed to provide investors with notification of the following: (1) There was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s Indian gift card business in the fourth quarter of 2020. (2) that the company’s internal controls related to the transaction cycle of gifts or prepaid income showed a material weakness; and (3) that the Company’s independent auditor would have a reasonable likelihood of resigning due to a dispute with Ebix over $ 30 million in a mixed escrow account held by Ebix’s outside counsel; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or were unfounded.
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If you purchased or otherwise acquired the Ebix Securities during the class period, you may move the court no later than 60 days after this notice and ask the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or you can take no action and remain an absent member of the class. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email Shareholders@glancylaw.com or visit our website at www.glancylaw.com. When inquiring by email, please include your mailing address, telephone number and number of shares purchased.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.