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RADNOR, Pa., Feb.27, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in York Court against Ebix, Inc. (NASDAQ: EBIX) (“Ebix”) on behalf of those who have purchased or acquired Ebix securities between November 9, 2020 and February 19, 2021, inclusive (the “Class Period”).
Investors who have bought or acquired Ebix securities during the Recourse Period may, no later than April 23, 2021, seek to be appointed principal representative of the applicants of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by e-mail to [email protected]; or Click on 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, remittances and healthcare industries.
The Recourse Period begins on November 9, 2020, when Ebix has filed its Quarterly Report for the period ended September 30, 2020 on a Form 10-Q with the United States Securities and Exchange Commission, indicating in the relevant section that the “Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our“ disclosure controls and procedures ”. . . [and] have concluded that these disclosure controls and procedures are effective. “
On February 19, 2021, after the market closed, Ebix disclosed that its independent auditor, RSM US LLP (“RSM”), had resigned “due to its inability, despite repeated investigations, to obtain sufficient and appropriate evidence. which would enable it to assess the business objective of the significant unusual transactions that occurred in the fourth quarter of 2020 ”related to Ebix’s gift card business in India. RSM also said there was a significant weakness related to Ebix’s inability to design controls “over the transaction cycle of gift or prepaid card income sufficient to prevent or detect material misstatement.” Additionally, Ebix and RSM disagreed over the accounting treatment of $ 30 million that was transferred to a mixed trust account of Ebix’s external legal counsel in December 2020.
Following this news, Ebix’s stock price fell $ 20.24, or approximately 40%, to close at $ 30.50 on February 22, 2021.
The complaint alleges that, throughout the litigation period, the defendants failed to disclose to investors that: (1) there was insufficient evidence to determine the business purpose of certain unusual transactions material to the business of Ebix gift cards to India during the fourth quarter of 2020 .; (2) there was a material weakness in Ebix’s internal controls over the gift or prepaid income transaction cycle; (3) Ebix’s independent auditor, RSM, was reasonably likely to resign due to disagreements with Ebix regarding $ 30 million which had been transferred to a mixed trust account of Ebix’s external legal counsel; and (4) as a result of the foregoing, the defendants’ positive statements regarding the business, business and prospects of Ebix were materially misleading and / or lacking reasonable basis.
Ebix investors can, no later than April 23, 2021, seeks to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may choose to do nothing and remain an absent class member. A principal plaintiff is a representative party who acts on behalf of all members of the class in directing the litigation. To be appointed as the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country relating to securities fraud, breaches of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors in 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 the recovery of public funds). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
(610) 667-7706
[email protected]
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