PHILADELPHIA, Feb. 23, 2021 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ:EBIX) on behalf of investors who purchased shares of the Company’s common stock between November 9, 2020 and February 19, 2021, inclusive (the “Class Period”).
Investors who purchased Ebix’s common stock during the Class Period and suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at email@example.com or online at https://kaskelalaw.com/case/ebix-inc/, for additional information about this action and their legal rights and options.
According to the complaint, on February 19, 2021, Ebix revealed that its independent auditor, RSM US LLP (“RSM”), resigned “as a result of being unable, despite repeated inquiries, to obtain sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020” related to the Company’s gift card business in India. RSM had also stated that there was a material weakness related to Ebix’s failure to design controls “over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement.” In addition, Ebix and RSM disagreed over the accounting treatment of $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel in December 2020.
Following this disclosure, shares of Ebix’s common stock fell $20.24 per share, or nearly 40% in value, to close on February 22, 2021 at $30.50 per share.
IMPORTANT DEADLINE: Investors who purchased Ebix’s common stock during the Class Period may, no later than April 23, 2021, seek to be appointed as a lead plaintiff representative in the action.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.