BOSTON, MA / ACCESSWIRE / March 2, 2021 / Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that a lawsuit for violation of the federal securities laws has been filed against Ebix, Inc. (NASDAQ:EBIX) and certain of its executives. The deadline to move the Court to be appointed lead plaintiff is April 23, 2021.
After the markets closed on February 19, 2021, Ebix announced that RSM US LLP, Ebix's independent registered public accounting firm, had resigned on February 15, 2021. In its resignation letter, RSM stated that it was "unable, despite repeated inquiries, to obtain appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020." RSM further stated that it had identified a material weakness because Ebix's "management did not design or implement the necessary procedures and controls over the gift or prepaid card revenue transaction cycle to prevent or detect a material misstatement." The market was stunned by this announcement, with shares falling approximately 40% on February 22, 2021, wiping out hundreds of millions of dollars of market capitalization.
A lawsuit has been filed against Ebix and two of its executives in the U.S. District Court for the Southern District of New York. The lawsuit is captioned Teifke v. Ebix, Inc., et al., No. 1:21-cv-01589 (S.D.N.Y.). The lawsuit alleges, among other things, that Ebix misled investors concerning the existence of a material weakness in the Company's internal controls, that there was insufficient audit evidence to determine the business purpose of certain unusual transactions in the fourth quarter of 2020.
If you purchased or acquired shares of Ebix between November 9, 2020 and February 19, 2021, you are strongly encouraged to contact the nationally-recognized securities law firm Block & Leviton LLP (www.blockleviton.com) at (617) 398-5600, via email at [email protected], or to visit our website for information on the case. The deadline to move the Court to be appointed lead plaintiff is April 23, 2021. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP