PHILADELPHIA, Feb. 27, 2021 (GLOBE NEWSWIRE) – Kaskela Law LLC announces a shareholder-class action lawsuit filed against Ebix, Inc. (“Ebix” or “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 ”).
According to the complaint, on February 19, 2021, Ebix revealed that his independent investigator, RSM US LLP (“RSM”) had resigned as a result of his inability, to notwithstanding a number of investigations, obtain sufficient audit evidence that would allow it to assess the business purpose of unusually significant 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 associated with Ebix’s failure to design controls “across the trade circle of gift or prepaid card revenue sufficient to prevent or detect material misstatement. “Furthermore, Ebix and RSM did not agree on an accounting treatment of $ 30 million that was transferred into an anxious trust account of legal advice outside Ebix in December 2020.
Following this announcement, shares of Ebix common stock fell $ 20.24 per share, or nearly 40% in value, to close on February 22, 2021 at $ 30.50 per share.
Ordinary holders of Ebix who purchased or acquired shares of the Company’s stock before November 9, 2020 are encouraged to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at [email protected], to discuss this action and the rights and their legal options. Further information is available at https://kaskelalaw.com/case/ebix-der/.
Kaskela Law LLC represents sole investors in securities fraud, corporate governance, and merger & acquisition law. For more information about Kaskela Law LLC visit www.kaskelalaw.com.
INFORMATION:
David Seamus Kaskela, Esq.
LAOIDH KASKELA LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
(484) 258 – 1585
(888) 715 – 1740
www.kaskelalaw.com
[email protected]
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