Ebix, Inc.
Ebix, Inc. (NASDAQ: EBIX)
MURRAY FRANK LLP is investigating securities fraud claims against Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) and certain of its officers, on behalf of persons or entities who purchased or otherwise acquired shares of Ebix's common stock from May 6, 2009 through June 30, 2011, inclusive (the "Class Period").
Join the Class Action
The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Ebix’s financial results and business operations.
Specifically, it is alleged that during the Class Period, the Company and certain of its officers made false and misleading statements about or knew but failed to disclose that (1) aspects of the Company’s provision for taxes did not conform to Generally Accepted Accounting Principles (“GAAP”), (2) the Company’s accounts receivables were overstated; (3) the Company lacked adequate and effective internal and financial controls; and (4) as a result of the foregoing, during the Class Period, the Company’s statements were materially false and misleading.
On March 24, 2011, the website Seeking Alpha published a report (the “Report”) which alleged that the Company engaged in a number of accounting irregularities and stated that in addition, “[t]he EBIX story also comes with multiple auditor resignations, governance abuses, misrepresented organic growth, questionable cash flow and a contentious CEO.” In response to the Report, Ebix’s stock price fell by $7.20 per share, or over 23%, from a close of $29.72 on March 23, 2011 to a close of $22.52 per share on March 24, 2011.
Subsequently, on June 30, 2011, the media reported that the shareholders of Peak Performance Solutions, Inc. (“Peak”), which was acquired by Ebix in 2009, had filed a lawsuit claiming that Ebix was unable to tie customer payments to specific invoices, and was therefore unable to determine which customers had made payment for which projects. The complaint alleged, “Ebix does not have sufficient internal accounting controls to allow their books and records to be relied on.” On this news, Ebix’s stock price fell an additional $1.30 per share, or 6%, from a close of $20.35 per share on June 29, 2011 to a close of $19.05 on June 30, 2011.
If you purchased Ebix securities within the Class Period, you may move the Court, not later than September 12, 2011, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com
MURRAY FRANK LLP is investigating securities fraud claims against Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX) and certain of its officers, on behalf of persons or entities who purchased or otherwise acquired shares of Ebix's common stock from May 6, 2009 through June 30, 2011, inclusive (the "Class Period").
Join the Class Action
The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Ebix’s financial results and business operations.
Specifically, it is alleged that during the Class Period, the Company and certain of its officers made false and misleading statements about or knew but failed to disclose that (1) aspects of the Company’s provision for taxes did not conform to Generally Accepted Accounting Principles (“GAAP”), (2) the Company’s accounts receivables were overstated; (3) the Company lacked adequate and effective internal and financial controls; and (4) as a result of the foregoing, during the Class Period, the Company’s statements were materially false and misleading.
On March 24, 2011, the website Seeking Alpha published a report (the “Report”) which alleged that the Company engaged in a number of accounting irregularities and stated that in addition, “[t]he EBIX story also comes with multiple auditor resignations, governance abuses, misrepresented organic growth, questionable cash flow and a contentious CEO.” In response to the Report, Ebix’s stock price fell by $7.20 per share, or over 23%, from a close of $29.72 on March 23, 2011 to a close of $22.52 per share on March 24, 2011.
Subsequently, on June 30, 2011, the media reported that the shareholders of Peak Performance Solutions, Inc. (“Peak”), which was acquired by Ebix in 2009, had filed a lawsuit claiming that Ebix was unable to tie customer payments to specific invoices, and was therefore unable to determine which customers had made payment for which projects. The complaint alleged, “Ebix does not have sufficient internal accounting controls to allow their books and records to be relied on.” On this news, Ebix’s stock price fell an additional $1.30 per share, or 6%, from a close of $20.35 per share on June 29, 2011 to a close of $19.05 on June 30, 2011.
If you purchased Ebix securities within the Class Period, you may move the Court, not later than September 12, 2011, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com