Kessler Topaz Meltzer & Check, LLP Reminds Investors of Class Action Lawsuit Against Ebix, Inc. (EBIX)

Kessler Topaz Meltzer & Check, LLP’s law firm announces that a class action lawsuit has been filed against Ebix, Inc. (NASDAQ: EBIX) (“Ebix”) in the US District Court for the Southern District of New York. on behalf of those who bought or acquired Ebix securities between November 9, 2020 and February 19, 2021, including Ebix (the “Class Period”).

Investors who bought or acquired Ebix securities during the class period can: by April 23, 2021 at the latesttry to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to info@ktmc.com; or click on https://www.ktmc.com/ebix-inc-securities-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=ebix

Ebix supplies the insurance, finance, travel, money transfer and healthcare industries with infrastructure exchanges.

The class period begins on November 9, 2020 when Ebix filed its quarterly report for the period ended September 30, 2020 with the SEC on a Form 10-Q, stating in a relevant part that the “Chief Executive Officer and Chief Financial Officer” assessed the effectiveness of our “disclosure controls and procedures”. [and] have concluded that these disclosure controls and procedures are effective. “

On February 19, 2021, after the market closed, Ebix announced that its independent auditor, RSM US LLP (“RSM”), had resigned “because of its inability to obtain sufficient appropriate audit evidence despite repeated investigations that would make this possible. ” Assessment of the business purpose of major unusual transactions in Q4 2020 “related to Ebix’s gift card business in India. RSM also stated that there was a material weakness related to Ebix’s failure to control” the gift or prepaid transaction cycle – Draft card receipts sufficient to prevent or detect material misstatement. “In addition, Ebix and RSM disagreed on accounting for $ 30 million in a mixed escrow account held by Ebix’s outside legal advisor in December 2020 had been transferred.

The story goes on

Following this news, Ebix’s share price fell $ 20.24, or approximately 40%, to close at $ 30.50 on February 22, 2021.

The complaint alleges that throughout the class period, defendants failed to advise investors that: (1) there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India in the fourth quarter of 2020 ;; (2) Ebix’s internal control over the transaction cycle of gifts or prepaid income was significantly weakened. (3) It was quite likely that Ebix’s independent auditor, RSM, resigned because of a disagreement with Ebix over $ 30 million deposited in a mixed escrow account held by Ebix’s external legal advisor. and (4) as a result of the foregoing, Defendants’ positive statements about Ebix’s business, business and prospects were materially misleading and / or unfounded.

Ebix investors can by April 23, 2021 at the latest, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.

Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210420005029/de/

contacts

Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com

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