HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Investigates Ebix (EBIX) for Possible Securities Fraud After Auditor Quits Questioning the Accounting for "Significant Unusual Transactions," Encourages Investors with Significant Losses to Contact Firm
SAN FRANCISCO, Feb. 22, 2021 /PRNewswire/ -- Hagens Berman urges Ebix, Inc. (NASDAQ: EBIX) investors with significant losses to submit your losses now. The firm is investigating possible securities fraud and certain investors may have valuable claims.
The investigation centers on the propriety of Ebix's reported results and internal controls over financial reporting.
On Feb. 19, 2021, Ebix announced that its outside auditor, RSM US LLP, had abruptly resigned. RSM advised the audit committee chair that "despite repeated inquiries" RSM was unable to obtain sufficient audit evidence to "evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020, including whether such transactions have been properly accounted for and disclosed in the financial statements subject to the Audit." These "unusual transactions" concerned the company's gift card business in India.
In addition, RSM and Ebix disagreed over whether $30 million transferred to a comingled trust account of its outside counsel should still be classified as cash on Ebix's balance sheet, even though those funds were outside Ebix's direct control.
These revelations drove the price of Ebix shares crashing lower on Feb. 22, 2021.
"We're focused on investors' losses and determining if Ebix insiders has cooked the company's books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Ebix should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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