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Ebix (EBIX) Shares Fall After Report Alleges Undisclosed Singapore Related-Party Loan
Ebix Inc. (NASDAQ: EBIX) shares fell nearly 12% in early trading today after a report by Gotham City Research LLC, published on Seeking Alpha, claimed the Atlanta-based company concealed from U.S. regulators a $65.8 million related-party loan to its Singapore subsidiary.
The report also identified a $67 million accounting discrepancy in long-lived assets and Australian revenues at a portion of what was reported in the company’s SEC filings.
As a result of its findings, Gotham City Research LLC said Ebix’s financial statements are “unreliable, inaccurate, and incomplete” and its shares should be halted.
A class action complaint was filed against Ebix in 2011 alleging the company overstated its account receivables and did not conform to Generally Accepted Accounting Principles. The case is pending in the Northern District of Georgia.