“The Company continues to generate strong cash flows,” the statement said, and “is not aware of any wrongdoing in any manner.”
Officials at Ebix did not respond to The Atlanta Journal-Constitution’s request for further comment Monday.
Last year, a large travel company in India broke off a pending merger agreement with Ebix, charging Ebix with breaching the terms of the deal.
In early 2019, the company faced questions about a shareholder connected to the company unloading nearly $1 million in stock just before the firm changed auditors. The shift in auditors sent Ebix shares down 20% in a day and the timing of the sale raised questions of insider trading, legal experts told The Atlanta Journal-Constitution at the time.
In the fourth quarter of 2014, Ebix had to pay $1.4 million following an IRS audit of the company’s income tax returns.
The current situation has drawn the interest of several law firms that handle securities cases. Boston-based Block & Leviton and Los Angeles-based Glancy Prongay & Murray said they have opened investigations.