Zamansky LLC announces that it is investigating Ebix, Inc. (Nasdaq: EBIX) (“Ebix” or the “Company”) for potential breaches of fiduciary duties. Specifically, the investigation relates to Ebix’s former auditing firm, Cherry Bekaert LLP, and opinions expressed by the auditor concerning the Company’s purported failure to maintain effective internal control over its financial reporting due to certain material weaknesses identified by Company management. If you are an Ebix shareholder and still hold your EBIX shares, please contact our firm for further information.
As disclosed in Ebix’s SEC filings, Company management identified certain material weaknesses in the design of the Company’s controls over accounting “for business combinations, the preparation of the income tax provision, and having contemporaneous documentation of significant acquisition related transactions.” Further, Ebix’s Audit Committee has recently appointed RSM US LLP to serve as its independent auditor for fiscal 2019. Cherry Bekaert had served as Ebix’s auditor from 2008 through October 5, 2018. Since the release of news in early October 2018 concerning replacing Cherry Bekaert as the Company’s auditor, EBIX shares have declined approximately 35% value.
According to Jake Zamansky, an investment fraud attorney, Ebix’s officers and directors owe the Company and its shareholders fiduciary duties. “Our initial analysis of Ebix and its accounting practices suggests shareholders may have suffered damages as a result of the Company’s internal financial controls,” Zamansky says. “As we continue our investigation into this matter, our law firm will review whether certain of Ebix’s officers and directors may have breached their duties to the Company.”
What Ebix Shareholders Can Do
If you are a current shareholder of Ebix, please contact us to review or discuss your legal rights. You may, without obligation or cost to you, email jake@zamansky.com or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with experience handling securities, hedge fund, ERISA and other shareholder class action and derivative litigation. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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