Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against Ebix, Inc.
RADNOR, Pa .– (BUSINESS WIRE) – The law firm of Kessler Topaz Meltzer & Check, LLP, announces that a security fraud class action has been filed against Ebix, Inc. (NASDAQ: EBIX) (“Ebix”) in the US District Court for the Southern District of New York Names of those who bought or acquired Ebix securities between November 9, 2020 and February 19, 2021 inclusive (including 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 firstname.lastname@example.org; or click on https://www.ktmc.com/ebix-inc-securities-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=ebix
Ebix provides infrastructure exchanges for the insurance, finance, travel, money transfer and healthcare industries.
The class period begins on November 9, 2020, when Ebix filed its quarterly report for the period ended September 30, 2020 on a Form 10-Q with the US Securities and Exchange Commission and found in a relevant part that the Chief Executive Officer and Chief The Finance 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, despite repeated investigations, he was unable to obtain sufficient appropriate audit evidence which would enable “Fourth Quarter 2020 Business Purpose Assessment of Significant Unusual Transactions” related to Ebix’s gift card business in India. RSM also stated that there was a key 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 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 notify investors that: (1) there was insufficient audit evidence in the fourth quarter of 2020 to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India ;; (2) Ebix’s internal controls over the transaction cycle of gifts or prepaid revenue were 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 outside legal counsel. 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 lead class agent by Kessler Topaz Meltzer & Check, LLP, or other attorney, or elect 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 federal and state law violations. 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.