Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Ebix (NASDAQ:EBIX), a company that develops e-commerce solutions for the insurance industry, plummeted 30% midday after a Bloomberg report insinuated, based on persons familiar with the matter, that Ebix was under investigation for money laundering. Shares have since rebound to a single-digit percentage loss.

So what: According to Bloomberg, today's news that investigators are closely examining Ebix's cross-border transactions follows word in June that the U.S. Attorney's office in Atlanta was investigating the company for "allegations of intentional misconduct." Ebix fired back at Bloomberg by labeling the report as inaccurate and damaging to Ebix shareholders, and declaring itself innocent of the allegations of money laundering.

Now what: I don't think investors have a choice but to watch idly from the sidelines. Given the ongoing SEC investigation into the company, as well as the PR damage that this investigation may cause its business, there are far too many question marks for shareholders to risk their hard-earned capital. I'd certainly encourage adding Ebix to your watchlist, as a resolution from the SEC's poking and prodding could result in big upside potential, but for now I'd suggest erring on the side of caution.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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