Wolf Popper LLP Announces Investigation on Behalf of Investors in Ebix, Inc.
NEW YORK, February 23, 2021: Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of Ebix, Inc. common stock (NASDAQ: EBIX).
After the market closed on Friday February 19, 2021, Ebix disclosed that on February 15, 2021, Ebix’s independent auditor RSM US LLP resigned effective immediately.
RSM’s letter of resignation stated RSM was “resigning 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, including whether such transactions have been properly accounted for and disclosed in the financial statements subject to the Audit.”
RSM’s letter also stated that the unusual transactions concerned the Company’s gift card business in India, and RSM believed that Ebix’s “internal control over financial reporting was not effective as of December 31, 2020 due to the identification of a material weakness. Specifically, management did not design or implement the necessary procedures and controls over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement.”
In a telephone call earlier on February 15, RSM informed the Chairman of Ebix’s Audit Committee of these issues and RSM’s resignation. According to Ebix, RSM “advised the Chairman that if this requested information was further investigated it might materially impact the fairness or reliability of the financial statements subject to the audit or affect RSM’s willingness to be associated with the Company’s financial statements, but that since RSM had resigned, no further investigation would occur.”
On February 22, 2021, Ebix common stock fell $20.24 per share, or nearly 40%, to close at $30.50 per share.
Investors who have lost over $100,000 trading in Ebix common stock and who would like to discuss the investigation should contact Joshua Ruthizer at (212) 451-9668, (877) 370-7703, or firstname.lastname@example.org.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm’s website at www.wolfpopper.com.
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