Abraham, Fruchter & Twersky, LLP Announces
Investigation of Ebix, Inc.
July 15, 2011 02:38 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--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. (“Ebix” or the “Company”) (Nasdaq:EBIX) between May 6, 2009 and June 30, 2011, inclusive (the “Class
On March 24, 2011, Seeking Alpha published a report (“Report”) 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 Company’s “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 this news, the Company’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. (“Peak”), 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. 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 Company’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 email@example.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.
Abraham, Fruchter & Twersky, LLP
Ximena R. Skovron, Esq.