NEW YORK, Aug. 11, 2011 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased securities of Ebix, Inc. ("Ebix" or the "Company") (Nasdaq:EBIX) between May 6, 2009, and June 30, 2011 (the "Class Period").
The lawsuit alleges that Defendants portrayed the Company as a fast-growing leader in its industry, with rapidly increasing revenues and net income, a favorable tax position, and rapid and profitable acquisitions. As a result, the complaint alleges, Ebix securities traded at artificially inflated prices throughout the class period.
The complaint further alleges that in fact, (a) the Company's internal controls regarding acquisitions were inadequate, and as a result, the Company's financial statements regarding acquisitions were materially inaccurate; (b) the Company's purportedly rapid growth was due in large part to its acquisitions, and its organic growth was in fact slowing; (c) the Company's purported tax advantages were achieved by violating generally accepted accounting principles; and (d) Defendants materially and improperly inflated the Company's cash flows and gross margins.
The complaint alleges that some of the above information leaked into the market on March 24, 2011, causing the stock to drop 24%, and that on June 30, 2011, a group of insiders brought suit against the Company and disclosed the above facts to the market, causing Ebix's stock to fall another 6%.
If you purchased Ebix securities during the Class Period you may, no later than September 12, 2011, request that the court appoint you as lead plaintiff of the proposed class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Your share in any recovery will not be enhanced or diminished by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover in a class action; you can recover as an absent class member. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover as an absent class member. If this action is certified as a class action, class members will be automatically represented by court-appointed counsel. The complaint in this action was not filed by Milberg.
Milberg LLP has been representing individual and institutional investors for more than four decades and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions regarding this matter, please contact the following attorney:
Andrei V. Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.