Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX), concerning whether the company has violated federal securities laws.
On March 24, 2011, Seeking Alpha Published a report questioning Ebix practices. According to the EBIX's filings, KPMG LLP resigned as the independent registered public accounting firm for the Company. Just prior to its resignation, KPMG found:
(1) delegation of authority and what KPMG considered to be inadequate reviews by a person other than the preparer of accounting information, (2) the lack of a formalized contract review process to ensure proper revenue recognition, (3) the lack of a complete understanding of the Company’s income tax positions and related accounts, (4) inadequate documentation for certain unusual transactions (including the basis for the Company’s accounting conclusions), and (5) internal control matters (documented and testable control environment) under the Sarbanes-Oxley Act.
The article continues to state that in addition to unusual accounting, Ebix has other issues including multiple auditor resignations, governance abuses, misrepresented organic growth, and questionable cash flow. On this news, shares of Ebix plummeted almost 24% to close at $22.52 per share.
If you are aware of any facts relating to this investigation, or purchased shares of EBIX, you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate work, private securities offerings, and securities arbitration.