Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
On Friday, February 19, 2021, software provider Ebix Inc.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.
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.
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