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Abraham, Fruchter & Twersky, LLP Announces Investigation of Ebix, Inc.

^{Published on 2011-07-15 11:45:27 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Abraham, Fruchter & Twersky, LLP has commenced an investigation for possible violations of federal securities laws on behalf of purchasers of the common stock of Ebix, Inc. (aEbixa or the aCompanya) (Nasdaq:EBIX) between May 6, 2009 and June 30, 2011, inclusive (the aClass Perioda).

"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 March 24, 2011, Seeking Alpha published a report (aReporta) accusing the Company, a supplier of software and electronic commerce solutions to the insurance industry, of engaging in a number of accounting manipulations, including: a) manipulating stated organic growth; b) overstating profit margins; c) overstating its accounts receivables; d) manipulating tax liabilities; and e) inflating cash flows. The Report concluded that the Companya™s aproblems 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.a On this news, the Companya™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. (aPeaka), 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 Companya™s shares declined an additional $1.30 or more than 6% and closed at $19.05. Ebix supplies software and electronic commerce solutions to the insurance industry. The firm is investigating whether Ebix may have made materially false and misleading statements regarding the Companya™s business and financial results between May 6, 2009 and June 30, 2011.

If you purchased Ebix common stock between May 6, 2009 and June 30, 2011 and you wish to serve as lead plaintiff in the class action, you must move the Court no later than September 12, 2011. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

If you would like to discuss these claims or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Ximena R. Skovron of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at [ xskovron@aftlaw.com ].

Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.