Ebix, Inc. Investor Investigation In Connection With Steep Stock Price Drop

If you are an investor in Ebix, Inc. (Public, NASDAQ:EBIX) shares, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

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Following a steep 24% stock price drop an investigation on behalf of investors in shares of Ebix, Inc. (Public, NASDAQ:EBIX) was announced.

The investigation by a law firm focuses on a more than 20% stock price drop following a report on Seeking Alpha on March 24, 2011.

Atlanta based supplier of software and e-commerce solutions Ebix’s 12months Total Revenue increased from $42.84million in 2007 to $132.19million in 2010. Its Net Income rose from $12.67million in 07 to $59.02million in 2010.

Shares of Ebix, Inc. (Public, NASDAQ:EBIX) rose from under $15 in 2010 to as high as $29.72 on March 23, 2011. Then on March 24, 2011 EBIX shares fell from as high as $30.21 to $21.47 and closed Thursday’s trading at $22.52 per share.

The same day Ebix, Inc. (NASDAQ: EBIX) announced that it had received calls from shareholders regarding the sudden drop in the price of its common stock as quoted on NASDAQ and despite the fact that its policy of not responding to individual blogs that speculate on the operations or future results of the Company it said that it is not aware of any negative developments within Ebix, Inc or in its operations that would warrant in such a sudden drop in the price of its stock.

Ebix refers to an article on Seeking Alpha from that same day with the title: “Ebix: Not a Chinese Fraud, But a House of Cards Nonetheless”.

Among other things, the article stated, that they “believe that EBIX is nothing more than a roll-up that has materially misrepresented its business (relative to the CEO's buzz words) as well as its organic growth. Its business model is predicated on two principals: tax arbitrage and dramatic cost cuts (headcount reductions and offshoring), neither of which is sustainable. Further, the company's tax arbitrage may be more than "just" unsustainable, it may actually be illegal. EBIX's problems run deeper than unusual accounting. The EBIX story also comes with multiple auditor resignations, governance abuses, misrepresented organic growth, questionable cash flow and a contentious CEO. “