EBIX ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Ebix, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the U.S. District Court for the Southern Borough of New York on behalf of investors who bought Ebix, Inc. (NASDAQ: EBIX) securities between November 9, 2020 and February 19, 2021 inclusive (the “Class Period”). Investors have until April 23, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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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.
The complaint, filed on February 22, 2021, alleges that throughout the teaching period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business, and 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 over the transaction cycle of gifts or prepaid income were severely weakened; 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) that Defendants’ positive statements about the Company’s business, operations and prospects as a result of the foregoing were materially misleading and / or were unfounded.
If you have purchased Ebix securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.