CASES
Ebix, Inc
Class Period: May 6, 2009 to Jun 30, 2011
Lead Plaintiff Deadline: Sep 12, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Ebix, Inc.(EBIX) ("Ebix" or "Company") on behalf of all persons other than defendants who purchased Ebix securities between May 6, 2009 and June 30, 2011. This case has been filed in the United States District Court of the Southern District of New York.
The complaint aleges that on March 24, 2011, Seeking Alpha published a report ("Report") accusing the Company of engaging in a number of accounting manipulations, including: a) manipulating its stated organic growth; b ) overstating its profit margins; c) overstating its accounts receivables; d) manipulating its tax liabilities; and e) inflating cash flows. The report concluded that the Company's "problems run deeper than accounting. The EBIX story also comes with multiple auditor resignations, governance abuses, misrepresented organic growth, questionable cash flow and a contentious CEO."
On this news, the Company's shares declined $7.20 per share, or nearly 24%, to close on March 24, 2011, at $22.52 per share, on unusually heavy trading volume. On June 30, 2011, the media reported that the shareholders of Peak Performance Solutions, Inc. (Peak"), who sold their business to Ebix, filed a lawsuit in the United States District Court for the Southern District of Ohio, claiming that Ebix was consistently unable to bill customers properly, tie customer payments to invoices and provide basic financial data or calculate revenues for Peak.
On this news, the Company's shares declined an additional $1.30 or more than 6% and closed at $19.05. Throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that : (1) that the Company's tax provisions did not conform to Generally Accepted Accounting Principles ("GAAP"); (2) the Company overstated its account receivables; (3) the Company consistently failed to tie customer payments to specific invoices; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.