Kaskela Law LLC Announces Shareholder Class Action Lawsuit Against Ebix, Inc. (EBIX) and Encourages Long-Term EBIX Investors to Contact the Firm
PHILADELPHIA, Feb.27, 2021 (GLOBE NEWSWIRE) – Kaskela Law LLC announces that a class action lawsuit against Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) was filed on behalf of investors Purchased ordinary shares in the Company on November 11, 2020 and February 19, 2021 (including the “Class Period”).
According to the complaint, on February 19, 2021, Ebix announced that its independent auditor, RSM US LLP (“RSM”), had resigned “because, despite repeated investigations, it was unable to obtain sufficient appropriate audit evidence to enable it to do so would evaluate the business purpose of major 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.
Following that disclosure, Ebix common stock fell $ 20.24 per share, or nearly 40% of its value, to close at $ 30.50 per share on February 22, 2021.
Current Ebix shareholders who have bought or acquired shares in the company before November 9, 2020 We encourage you to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) At (484) 258-1585 or email firstname.lastname@example.org to discuss this action and your legal rights and options. Further information can also be found at https://kaskelalaw.com/case/ebix-der/.
Kaskela Law LLC only represents investors in the areas of securities fraud, corporate governance, and merger and acquisition disputes. For more information about Kaskela Law LLC, please visit www.kaskelalaw.com.
David Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
This announcement may constitute a solicitation of a lawyer in certain jurisdictions.