PHILADELPHIA, PA / ACCESSWIRE / March 3, 2021 / 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").
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.
Current Ebix stockholders who purchased or acquired shares of the Company's stock prior to 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 their legal rights and options. Additional information may also be found at https://kaskelalaw.com/case/ebix-der/.
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.
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SOURCE: Kaskela Law LLC