Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Ebix, Inc. and Encourages Investors to Contact the Firm Before April 26, 2021
NEW YORK, March 6, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP is reminding investors that a class action lawsuit has been filed in the U.S. District Court for the Southern Borough of New York on behalf of those who acquired Ebix. Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) securities from November 9, 2020 through February 19, 2021 (the “Class Period”) inclusive. Investors have until April 26, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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 which would enable the Business Purpose Assessment of Significant Unusual Transactions in the fourth quarter of 2020 ”related to the Company’s gift card business in India. RSM had also found 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 share 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.
The lawsuit 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 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 be reasonably likely to resign 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 unfounded.
If you have purchased or otherwise acquired Ebix securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, via email at investigations @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.