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Berman DeValerio Investigates Ebix, Inc.

  //science-technology.news-articles.net/content/2 .. 7/18/berman-devalerio-investigates-ebix-inc.html
  Published in Science and Technology on Monday, July 18th 2011 at 13:41 GMT by Market Wire
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BOSTON--([ BUSINESS WIRE ])--Berman DeValerio, ([ www.bermandevalerio.com ]) , one of the nationa™s leading law firms representing investors seeking to recover money lost due to investment fraud, is investigating possible securities fraud claims involving Ebix, Inc. (NASDAQ: EBIX) (aEBIXa or the aCompanya).

"was consistently unable to tie customer payments to specific invoices, and so [EBIX] was unable to determine which customers had made payment for which projects. [EBIX] does not have sufficient internal accounting controls to allow their books and records to be relied on."

The investigation was initiated shortly after Seeking Alpha published a multi-part investigative report (the aReporta) noting a myriad of problems affecting EBIXa™s business and future prospects. More specifically, the Report detailed specific questions about the Companya™s accounting transactions, including, but not limited to: (1) manipulating its stated organic growth; (2) overstating its profit margins; (3) manipulating its tax liabilities; and (4) inflating its cash flows. On March 24, 2011, the day the Report was issued, the Companya™s stock price plummeted $7.20 per share a" from $29.72 per share on March 23, 2011 to close at $22.52 per share on March 24, 2011 a" a decline of nearly 25% on unusually heavy trading volume.

Then, on June 30, 2011, the media first reported that the sole shareholders of Peak Performance Solutions, Inc. (aPeak Performancea), who had entered into a stock purchase agreement with EBIX to sell all of their stock in Peak Performance to EBIX on September 30, 2009 (the aStock Purchase Agreementa), had filed a lawsuit against the Company alleging fraudulent misrepresentation and fraudulent inducement as well as alleging that EBIX breached the Stock Purchase Agreement. More specifically, the Peak Performance lawsuit alleges that EBIX awas consistently unable to tie customer payments to specific invoices, and so [EBIX] was unable to determine which customers had made payment for which projects. [EBIX] does not have sufficient internal accounting controls to allow their books and records to be relied on.a On news of this lawsuit, the Companya™s shares fell an additional $1.06 per share a" from $20.35 per share on June 29, 2011 to close at $19.05 per share on June 30, 2011 a" or more than 6%.

If you purchased or acquired EBIXa™s securities between May 6, 2009 and June 30, 2011 and would like to learn more about your legal options, you may contact Berman DeValerio for more information.

Berman DeValerio is a national law firm representing investors for violations of securities and antitrust laws. The firm has 37 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.

This notice may constitute attorney advertising.