Boston, Massachusetts--(Newsfile Corp. - February 23, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential violations of the federal securities laws by Ebix, Inc. ("Ebix" or the "Company") (NASDAQ: EBIX) and its officers and directors. Ebix is an "international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries."
On February 19, 2021, after the market closed, Ebix issued a press release disclosing that RSM US LLP ("RSM"), the Company's independent registered public accounting firm, had notified the Company's Audit Committee of the Board of Directors by letter dated February 15, 2021, of its resignation.
Ebix's press release revealed that "RSM stated in its letter that its resignation was the '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.'" The Company also stated that "RSM also informed the Company that there was a disagreement with respect to the classification of $30 million held in a trust account for the benefit of the Company. In connection with a pending acquisition, in December 2020 the Company transferred $30 million to a trust account of its outside legal counsel."
In response to this news, Ebix shares fell from $50.74 per share on February 19, 2021, to close at $30.50 per share on February 19, 2021, a decline of $20.24 per share or over 39%. On February 23, 2021, shares were down another 16% in early trading.
On February 22, 2021, a securities class action was filed in the United States District Court for the Southern District of New York in a case captioned Teifke v. Ebix, Inc., et al., (Case No. 1:21-cv-01589), on behalf of "persons and entities that purchased or otherwise acquired" Ebix securities between November 9, 2020 and February 19, 2021. According to the press release announcing that case, investors have until April 23, 2021 to seek to serve as lead plaintiff.
If you would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: https://www.bermantabacco.com/case/ebix-inc/.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/75213