RADNOR, Pa., Feb. 27, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP alleges that a securities fraud class action lawsuit has been filed in the U.S. District Court for District A South New York vs. Ebix, Inc. (NASDAQ: EBIX) (“Ebix”) on behalf of those who purchased or acquired Ebix securities between November 9, 2020 and February 19, 2021, inclusive (the “class time”).
Investors who bought or acquired Ebix securities during class time can, no later than April 23, 2021, trying to be appointed as the plaintiff ‘s leading representative of the class. For more information or to find out how you can participate in this law, contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 and Adrienne Bell, Esq. (484) 270-1435; tax free at (844) 887-9500; via email at [email protected]; no click https://www.ktmc.com/ebix-inc-securities-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=ebix
Ebix provides infrastructure exchanges to the insurance, finance, travel, payroll and healthcare industries.
The Class Period begins on November 9, 2020, when Ebix completed its quarterly report for the period ending Sept. 30, 2020 on Form 10-Q with the U.S. Securities and Exchange Commission, aptly stated that the “Chief Executive and Chief Executive Finance Officer, evaluated the effectiveness of our ‘disclosure controls and procedures’. . . [and] have determined that these disclosure controls and procedures are effective. ”
On February 19, 2021, after the market closed, Ebix revealed that its independent analyst, RSM US LLP (“RSM”) had resigned as a result of his inability, to despite several investigations, obtain sufficient relevant research evidence that would allow it to assess the business cause of unusually important transactions that occurred in the fourth quarter of 2020 ”related to the Ebix gift card industry in India. RSM also said there was a material weakness associated with Ebix’s failure to design controls “over the trade circle of gift or prepaid gift revenue sufficient to prevent or detect material misstatement.” In addition, Ebix and RSM did not agree on an accounting treatment of $ 30 million that was transferred into a prestigious trust account of a legal advisor outside Ebix in December 2020.
Following this news, the price of Ebix shares fell $ 20.24, or about 40%, to close at $ 30.50 on February 22, 2021.
The complaint alleges that, during class time, the defendants failed to inform investors that: (1) there was insufficient investigative evidence to substantiate the business purpose of some unusually important transaction. proven in the Ebix gift card industry in India in the fourth quarter of 2020; (2) there was a material weakness in Ebix’s internal controls over the gift or prepaid revenue trading cycle; (3) Ebix’s independent investigator, RSM, was likely to resign over a disagreement with Ebix over a $ 30 million that was moved into a false trust account of an adviser legal outside Ebix; and (4) as a result of what was said, the defendants’ positive statements about Ebix’s business, employment and expectations were substantially misleading and / or unreasonable.
Ebix investors can, no later than April 23, 2021, try to be appointed as the plaintiff ‘s lead class representative through Kessler Topaz Meltzer & Check, LLP or other advisor, or they may choose to do nothing and remain an absent member of the class. A master planner is a representative party that acts on behalf of class members in enforcing the law. In order to be named as the lead planner, the Court must confirm that the class member’s application is standard in the applications of the other class members, and that the class member will appropriately represent the class. The decision as to whether or not you should be the main complainant does not affect your ability to have any recovery.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts across the country including security fraud, breach of trust obligations and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is the driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The company represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in recovering government dollars) . The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP visit www.ktmc.com.
INFORMATION:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (excluding taxes)
(610) 667-7706
[email protected]