GlobeNewswire Inc | Apr 18, 2021 03:14PM EDT

April 18, 2021

SAN FRANCISCO, April 18, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Ebix, Inc. (NASDAQ: EBIX) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.

Class Period: Nov. 9, 2020 Feb. 19, 2021Lead Plaintiff Deadline: April 23, 2021Visit:www.hbsslaw.com/cases/EBIXContact An Attorney Now:EBIX@hbsslaw.com 844-916-0895

Ebix, Inc. (EBIX) Securities Fraud Class Action:

The complaint alleges that Defendants concealed that: (1) there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebixs gift card business in India during 4Q 2020; (2) that there was a material weakness in Companys internal controls over the gift or prepaid revenue transaction cycle; and (3) that the Companys independent auditor, RSM, was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebixs outside legal counsel.

Investors began to learn the truth on Feb. 19, 2021 when RSM abruptly resigned, stating that 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 companys gift card business in India.

In addition, RSM and Ebix reportedly disagreed over whether $30 million transferred to a comingled trust account of Ebixs outside counsel should still be classified as cash on Ebixs balance sheet, even though those funds were outside Ebixs direct control.

On this news, the Companys share price fell as much as $20.24, or 40%, in a single trading day.

On Mar. 8, 2021, Ebix announced it has retained KG Somani & Co. as its new auditor, that it would not file its annual report until Apr. 2021, and that Board-appointed consultants and outside legal counsel are continuing to evaluate the payment solutions business.

Most recently, on Mar. 11, 2021, the Company received a noncompliance letter from Nasdaq for failing to timely file its 10-K, demanding that EBIX submit a plan to regain compliance with Nasdaqs rules by Apr. 16.

Were focused on investors losses and proving Ebix insiders cooked the companys books, said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Ebix shares and have significant losses, or have knowledge that may assist the firms investigation, click here to discuss your legal rights with Hagens Berman.

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 EBIX@hbsslaw.com.

About Hagens BermanHagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact: Reed Kathrein, 844-916-0895