Ebix Stock Lawsuit Investigation

Software provider’s stock drops 40% after their independent auditor resigns over financial disclosure issues

On Friday, February 19, 2021, software provider Ebix Inc. (NASDAQ: EBIX) announced that its independent auditor, RSM US LLP (“RSM”), is resigning. In a letter, RSM claimed it was resigning due to “unusual transactions” related to Ebix’s gift card business in India.

On this news, Ebix’s stock dropped 27% in after-hours trading on Friday, February 19, and continued to drop as much as 40% on Monday, February 22, causing harm to investors. If you invested in Ebix, you may have a claim.


Lost Money in Ebix Stock?

You may be eligible to recover your losses. Get a free and confidential consultation.

(Please provide number of shares, purchase date, and estimated losses.)


Ebix Stock Plummets 27% Following Resignation of Independent Auditor, RSM

On Monday, February 15, 2021, Ebix’s independent auditor RSM issued a letter stating that it was resigning over the company’s inability to obtain

“sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020.”

In addition, RSM stated that there was a material weakness related to Ebix’s failure to design controls to “prevent or detect a material misstatement.” Ebix and RSM also disagreed over the accounting treatment of $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel in December 2020.

If you invested in Ebix stock you may have a claim. Contact our securities lawyers today for a free and confidential consultation.

Our Securities Lawyers Have a Winning Record Against Companies Like Ebix

Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.

You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”

Eric Gibbs, award-winning securities attorney

Praise from the Courts

Federal judge in our AT&T class action:

“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”

Federal judge in our Chase lawsuit (resulting in $100 million settlement):

They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”

Read more about what judges say about us.

Eileen Epstein Carney

Eileen works closely with investors in securities cases and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

Dave Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Gibbs Law Group's Financial Fraud Experience

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.

We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).
titan of plaintiffs bar award
best law firm ranking
chambers USA leading firms award
daily journal top plaintiff lawyers award