US software company Ebix listed on the NASDAQ in July 1987. Between 2011 and 2018, it was attacked by three short-sellers alleging fraud, Copperfield (2011), Gotham (2013) and Viceroy (2018). The allegations centred on questionable acquisitions, artificially inflated revenues and various other accounting discrepancies. The allegations were not proven. Since 2016, Ebix has churned through four relatively small auditors. Most notably, in February 2021, RSM resigned owing to the discovery of significant unusual transactions concerning the company’s gift card business in India. However, Ebix managed to hire a replacement auditor, KG Somani, and appears to have regained compliance with NASDAQ listing rules. Ebix was attacked by short-seller Hindenburg Research in June 2022 alleging that it was faking a substantial portion of the sales within its EbixCash business.
Last updated July 2022
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