Ebix, Inc. (NASDAQ: EBIX)
Hagens Berman Sobol Shapiro LLP alerts investors in Ebix, Inc. (NASDAQ: EBIX) to the firm's investigation into possible disclosure violations.
If you purchased or otherwise acquired securities of EBIX between September 1, 2017 and October 8, 2018 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more infomation contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing EBIX@hbsslaw.com.
On October 5, 2018, Ebix and management announced they decided to replace the Company’s outside auditor Cherry Bekaert LLP and to appoint TR Chadha & Co. LLP as Ebix’s new outside auditor.
This news drove the price of Ebix shares down $14.18, or about 19.6%, to close at $58.10 on October 8, 2018.
Previously, on March 1, 2018, Cherry Bekaert expressed an adverse opinion about Ebix’s internal controls over financial reporting.
More recently, on December 11, 2018, an investigative financial research group published a report focusing on the Company’s M&A-related activity. The group reported, in part, it found (a) numerous accounting discrepancies regarding recognition of goodwill and acquisitions, and (b) evidence it believes is a scheme to incorrectly book revenue and earnings.
News of this report drove the price of Ebix shares down $3.02, or about 6%, to close at $44.90 on December 11, 2018.
“We’re focused on investors’ losses, whether Ebix’s historical financial statements require correction, the circumstances surrounding the decision to replace Cherry Bekaert, and whether the research group’s conclusions are correct,” said Hagens Berman partner Reed Kathrein.
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