Science & Technology
Tue, July 26, 2011Mon, July 25, 2011Sun, July 24, 2011Fri, July 22, 2011Thu, July 21, 2011Wed, July 20, 2011Tue, July 19, 2011Mon, July 18, 2011Sun, July 17, 2011Sat, July 16, 2011Fri, July 15, 2011Thu, July 14, 2011Wed, July 13, 2011Tue, July 12, 2011Mon, July 11, 2011Sun, July 10, 2011Sat, July 9, 2011Fri, July 8, 2011Harwood Feffer LLP Announces Class Action Lawsuit against Ebix, Inc.
Published in Science and Technology on Friday, July 15th 2011 at 11:25 GMT by Market Wire
NEW YORK--([ BUSINESS WIRE ])--Harwood Feffer LLP ([ www.hfesq.com ]) announced today that a class action complaint has been filed against Ebix, Inc. (aEbixa or the aCompanya) (Nasdaq: EBIX) and certain of the Companya™s officers for violations of the Securities Exchange Act of 1934. The action, brought on behalf of those purchasing the common stock of Ebix between May 6, 2009 through June 30, 2011, inclusive (the aClass Perioda), is pending in the United States District Court for the Southern District of New York.
"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."
No class has yet been certified in the above action. Class members will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 12, 2011 and be selected by the court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages to serve as a lead plaintiff. You may contact Harwood Feffer LLP at its website ([ http://www.hfesq.com ]) or by email to [ clowther@hfesq.com ] to ask any questions you may have in that regard.
Ebix supplies software and electronic commerce solutions to the insurance industry. The Complaint alleges that during the Class Period, Defendants issued a series of materially false and misleading statements regarding the Company's business and financial results. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's tax provisions did not conform to Generally Accepted Accounting Principles; (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.
On March 24, 2011, Seeking Alpha published a report (aReporta) accusing the Company 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 plummeted $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 Company's shares declined an additional $1.30 or more than 6% and closed at $19.05.
For over two decades, Harwood Feffer has been a nationally recognized firm that specializes in complex, multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability and civil rights litigation. Harwood Feffer serves as lead counsel in numerous class actions on behalf of investors, employees, and consumers and has recovered hundreds of millions of dollars in recoveries for its clients. Please visit the Harwood Feffer LLP website ([ http://www.hfesq.com ]) for more information about the firm.
If you purchased Ebix shares and suffered a loss in excess of $100,000 during the Class Period and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Harwood Feffer LLP
Attorneys:
Robert I. Harwood
Jeffrey M. Norton
488 Madison Ave., 8th Floor
New York, NY 10022
tel. 877-935-7400
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
