SAN FRANCISCO, April 18, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on Ebix, Inc. (NASDAQ: EBIX) Investors with significant losses can file their losses now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.
School lesson: November 9, 2020 – February 19, 2021
Deadline of the main plaintiff: April 23, 2021
Contact an attorney now: [email protected]
Class Lawsuit Against Securities Fraud At Ebix, Inc. (EBIX):
The complaint alleges that the defendants withheld: (1) There was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s Indian gift card business in Q4 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, RSM, was reasonably likely to resign due to a dispute with Ebix over $ 30 million in a mixed escrow account held by Ebix’s outside counsel.
Investors began to learn the truth on February 19, 2021 when RSM abruptly resigned, stating that “despite repeated inquiries,” RSM was unable to obtain sufficient audit evidence to “evaluate RSM’s business purpose significant unusual transactions It did so in the fourth quarter of 2020, including whether or not such transactions were properly accounted for and included in the audit’s closing. “These“ unusual transactions ”were in the company’s gift card business in India.
In addition, RSM and Ebix reportedly disagreed on whether $ 30 million deposited in an escrow account held by Ebix’s external legal counsel should continue to be classified as cash on Ebix’s balance sheet despite those funds being outside of direct ones Control of Ebix were.
In the news, the company’s stock price fell as much as $ 20.24, or 40%, in a single trading day.
On March 8, 2021, Ebix announced that it had retained KG Somani & Co. as its new auditor, that it would not submit its annual report until April 2021, and that advisors and external legal advisors appointed by the Board of Directors would continue to “evaluate” the payment solutions business. “
The story goes on
Most recently, on March 11, 2021, the company received a non-compliance letter from Nasdaq for failing to submit its 10-K on time, asking EBIX to come up with a plan to restore compliance with Nasdaq rules by April 16.
“We’re focusing on investor losses and proving that Ebix insiders have boiled the company’s books,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you’ve invested in Ebix stock and have made significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about Ebix should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
About Hagens Berman
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Reed Kathrein, 844-916-0895