Ebix Comments On False And Inaccurate Assertions In Bloomberg Article
Ebix, Inc., (NASDAQ: EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance industry,
today issued the following statement in response to an August 6, 2013
Ebix, Inc., (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today issued the following statement in response to an August 6, 2013 Bloomberg article regarding the Company: Ebix is disappointed that Bloomberg published its erroneous article despite the Company's clear and unambiguous statements that allegations of money laundering were false, inaccurate and likely to cause significant financial harm to Ebix shareholders. Bloomberg chose to disregard these formal objections, relying instead on sourcing its allegations to unnamed sources, and refusing to state whether these sources were in fact plaintiffs in litigation against Ebix. In addition, Bloomberg chose to disregard the Company’s observation that this amounted to providing these anonymous individuals with a platform to advance an unknown agenda and attack a publicly traded company. Ebix confirmed that it has no business relationship or transactional relationship with any company affiliated with the Rennes Foundation, other than the investment in Ebix common stock by the Rennes Foundation. Ebix also noted that it is company policy not to comment on individual shareholders, such as the Rennes Foundation, which is mentioned in the Bloomberg article. On July 2, 2013, the United States District Court for the Northern District of Georgia Atlanta Division entered an Order denying the Plaintiff’s Motion for Class Certification with respect to the shareholder lawsuit concerning the same subject matter as the SEC and U.S. Attorney’s investigations. Ebix has filed a Motion for Judgment on the Pleadings based on recent binding authority issued by the U.S. Court of Appeals for the Eleventh Circuit, which is presently pending. On July 16, 2013, the Court entered a Stipulated Order Staying Discovery Pending Resolution of Defendants’ Motion for Judgment on the Pleadings. As previously disclosed, the Company was notified that the U.S Attorney for the Northern District of Georgia had opened an investigation into allegations of intentional misconduct that had been brought to its attention from the pending shareholder class action lawsuit against the Company’s directors and officers, the media and other sources. The pending shareholder class action lawsuit and an SEC investigation involving the same subject matters as this lawsuit were previously disclosed by the Company in its periodic reports filed with the SEC.