SOURCE: Brower Piven, A Professional Corporation

July 21, 2011 14:08 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in Ebix, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the September 12, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jul 21, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Ebix, Inc. ("Ebix" or the "Company") (NASDAQ: EBIX) during the period between May 6, 2009 and June 30, 2011, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 12, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company's tax provisions did not conform to Generally Accepted Accounting Principles, the Company overstated its account receivables, the Company consistently failed to tie customer payments to specific invoices, and the Company lacked adequate internal and financial controls. According to the complaint, after, on March 24, 2011, seeking Alpha published a report ("Report") accusing the Company of engaging in a number of accounting manipulations, including manipulating stated organic growth and tax liabilities and overstating profit margins, accounts receivables and cash flows and concluding that "[t]he Ebix story also comes with multiple auditor resignations, governance abuses, misrepresented organic growth, questionable cash flow and a contentious CEO," and after, 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, the value of Ebix stock declined significantly.

If you have suffered a net loss for all transactions in Ebix, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact