Ebix Denies Bloomberg Report of SEC Probe

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Shares of Ebix (Nasdaq: EBIX  ) fell as much as 31% in early trading today after Bloomberg published a report that said the company's accounting practices are under investigation by the Securities and Exchange Commission. Ebix responded in a press release calling the story "inaccurate and misleading."

"The Ebix senior management team has not been advised of nor is it aware of any SEC investigation regarding the Company's previous filings," CEO Robin Raina said in a press release. "We stand behind the accuracy of our public filings. The Bloomberg article is inaccurate and misleading in many respects and we intend to evaluate all avenues of recourse."

Bloomberg says the SEC's investigation was conducted over the past year and is focused on revenue recognition, internal controls, and the accuracy of its public statements to shareholders. The report cites four unnamed sources Bloomberg says possess "direct knowledge of the probe."

The stock, which Ebix says is being targeted by short-sellers, is down more than 15% year to date.

Read/Post Comments (2) | Recommend This Article (3)

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  • Report this Comment On November 05, 2012, at 3:19 PM, keesluijt wrote:

    Ebix has been targeted many times in the past year or 2 with acusations on its accouning practices. At the beginning of this year at least four lawyers placed cases with the SEC (if my memory serves me right), so maybe thats what the "case" is about.

    More importantly, these accusations and news flashes always seem to come out just before earnings are to be made public, which in my mind is a short seller tactic. On presenting Q1 2012, similar accusations were made public just before, and one publisher was later connected to short selling.

    As long as the SEC doesn't come out itself with a message, my quess is that this once again is a short seller tactic. Maybe it's time for action against these people if it turns out that there is no investigation.

    This is IMHO a downright damaging act for both the company and stock holders with a mid to long term position in the company. Of which I am one by the way.

    So until there is a SEC release, I'll treat the Bloomberg news for what it is: speculation

  • Report this Comment On November 05, 2012, at 3:54 PM, bcstoll4 wrote:

    The company has been one of the most effective growth stocks of the last decade. The company president and ceo owns 9% and is denying the report. The timing of this smells bad, like shortsellers are trying to manipulate the price. I bought more shares on the announcement. This company has significant cash generating capability, pays a dividend and is in a niche market. While goodwill on the balance sheet is high, and may warrant a write-off at some point, the company has not really missed earnings and had problems integrating acquisitions making that less likely. Earnings in a few days will give some indication on most recent acquisition.

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