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.