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.
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.
Interested in more info on Ebix? Add it to your watchlist by clicking here.
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.
More from The Motley Fool
3 Stocks That Turned $5,000 into $100,000 or More
Twenty baggers are a rare breed, but these three companies have earned that title in just the last decade.
3 Stocks That Turned $8,000 Into $195,000
Netflix, Priceline, and Ebix could have multiplied your wealth more than 20-fold over the last decade. What did these growth stories have in common?
Why Ebix Inc. Stock Gained 18% in April
The financial software and services provider is swimming in new and very large contracts these days -- and there may be even more of those on the horizon.