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Ebix Inc, EBIX Securities Stock Fraud

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Company: Ebix Inc,
Ticker Symbol: EBIX
Class Period: May-6-09 to Jun-30-11
Date Filed: Jul-15-11
Lead Plaintiff Deadline: Sep-13-11
Court: Southern District of New York
Allegations:
New York, NY: A securities class action complaint has been filed against Ebix, Inc. ("Ebix"or the "Company") (Nasdaq: EBIX) and certain of the Company' officers for violations of the Securities Exchange Act of 1934. The action, brought on behalf of those purchasing the common stock of Ebix between May 6, 2009 through June 30, 2011, inclusive (the "Class Period"), is pending in the United States District Court for the Southern District of New York. No class has yet been certified in the above action.

Ebix supplies software and electronic commerce solutions to the insurance industry. The Complaint alleges that during the Class Period, Defendants issued a series of materially false and misleading statements regarding the Company's business and financial results. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's tax provisions did not conform to Generally Accepted Accounting Principles; (2) the Company overstated its account receivables; (3) the Company consistently failed to tie customer payments to specific invoices; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On March 24, 2011, Seeking Alpha published a report ("Report") accusing the Company 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' "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' shares plummeted $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.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Ebix Inc, EBIX Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Ebix Inc, securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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