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What: Shares of Ebix (NASDAQ:EBIX) got destroyed today, dropping by as much as 32% within minutes, after Bloomberg reported that the SEC was probing the company's accounting practices.

So what: The report cites four anonymous sources, saying that regulators have been investigating Ebix's revenue recognition and internal controls over the past year. The probe hasn't been officially disclosed to the public, so if true, it would certainly be frightening for investors. However, CEO Robin Raina and Ebix's attorney, John Jordak, said the company has not been notified of any investigation.

Now what: In a press release, Raina said the Bloomberg article is "inaccurate and misleading" and defended the accuracy of Ebix's filings. This isn't the first time accounting concerns have been raised at Ebix. In March of last year, an anonymous Seeking Alpha blogger with a short position writing under the pseudonym Copperfield Research made accusations, similarly crushing shares. Bloomberg is certainly more reputable, and Ebix says it is now looking into "all avenues of recourse" against the media outlet.

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Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool owns shares of Ebix. Motley Fool newsletter services recommend Ebix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.