NEW YORK–(BUSINESS WIRE) – Scott + Scott Attorneys at Law LLP (“Scott + Scott”), an international shareholder and consumer litigation firm, announces the filing of a class action lawsuit against Ebix, Inc. (“Ebix” or the “Company”). (NASDAQ: EBIX) and some of its officers alleging violations of federal securities laws. If you purchased Ebix stock between November 9, 2020 and February 19, 2021 (including the “Class Period”) and suffered a loss, please contact Rhiana Swartz for more information at (844) 818-6980 or get rswartz @ scott-scott.com.
Ebix supplies the insurance, finance, travel, cash and healthcare industries with infrastructure exchanges.
The lawsuit alleges, among other things, that the Company made materially false and / or misleading information and / or failed to disclose that: (1) There was insufficient audit evidence to determine the business purpose of certain material unusual transactions in Ebix’s gift card business in India in the fourth quarter of 2020; (2) There was a material weakness in the company’s internal controls over the transaction cycle for gifts or prepaid income. and (3) it was reasonably likely that the Company’s independent auditor resigned because of a disagreement with Ebix over $ 30 million in a mixed escrow account held by Ebix’s outside legal advisor.
On February 19, 2021, despite previous statements by Ebix touting the effectiveness of its controls and financial disclosure procedures, the company announced that its independent auditor, RSM US LLP (“RSM”), resigned “because despite repeated investigations, he has not been able to obtain sufficient appropriate audit evidence to enable him to evaluate the business purpose of any material unusual transaction “relating to the Company’s gift card business in India. RSM also stated in its letter that it believed that the company’s “internal control over financial reporting was ineffective as of December 31, 2020 due to an identification of a material weakness.”
In that news, the company’s share price fell approximately 40%, closing at $ 30.50 on February 22, 2021, compared to its previous closing price of $ 50.74.
What you can do
If you purchased Ebix securities between November 9, 2020 and February 16, 2021, or if you have any questions about this notice or your statutory rights, please contact Attorney Rhiana Swartz at (844) 818-6980 or rswartz @ scott- scott .com. The deadline for the lead plaintiff is April 23, 2021.
About Scott + Scott Lawyers LLP
Scott + Scott has extensive law enforcement experience in key securities, antitrust, and retirement plan matters in the United States. The company represents pension funds, foundations, individuals and other companies worldwide with offices in New York, London, Connecticut, California and Ohio.