Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Ebix, Inc. (“Ebix”) (NASDAQ: EBIXQ) securities between November 9, 2020 and February 19, 2021, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company’s business, operations and prospects. Specifically, the complaint alleges that Defendants failed to disclose that: (1) there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India during the fourth quarter of 2020; (2) there was a material weakness in company’s internal controls over the gift or prepaid revenue transaction cycle; (3) the company’s independent auditor was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel; and (4) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On July 17, 2023, the Court granted Defendants’ Motion to Dismiss. On August 16, 2023, Lead Plaintiff appealed the dismissal to the Second Circuit Court of Appeals. The Second Circuit affirmed the District Court’s decision on January 8, 2025. This action has concluded.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.