SOURCE: Izard Nobel LLP

July 15, 2011 17:10 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Ebix, Inc.

WEST HARTFORD, CT--(Marketwire - Jul 15, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Ebix ("Ebix" or the "Company") (NASDAQ: EBIX) between May 6, 2009 and June 30, 2011, inclusive (the "Class Period").

The Complaint charges that Ebix and certain of its officers and directors violated federal securities laws. Specifically the Complaint alleges that defendants failed to disclose that: (i) the Company's tax provisions did not conform to GAPP; (ii) Ebix overstated its account receivables; (iii) Ebix consistently failed to tie payments to specific invoices; and (iv) Ebix lacked adequate internal and financial controls.

On March 24, 2011, Seeking Alpha published a report accusing Ebix of engaging in a number of accounting manipulations, including: manipulating stated organic growth; overstating profit margins and accounts receivables; manipulating tax liabilities; and inflating cash flows. On this news, Ebix fell $7.20 to close at $22.52 per share.

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, alleging 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, Ebix declined an additional $1.30 to close at $19.05.

If you are a member of the class, you may, no later than September 12, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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