Ebix announced the Securities and Exchange Commission (SEC) closed an investigation into allegations against the software company’s accounting practices raised in a short seller report.
In a press release Monday, the company said the SEC concluded its probe, which had not been announced publicly, without intending to recommend an enforcement action.
The agency’s investigation was launched in response to the 2021 resignation of RSM as Ebix’s auditor and a report published by Hindenburg Research in 2022 that accused the company of fabricating revenue growth within its gift card division.
The report caused Ebix’s stock to tank, and the company filed for bankruptcy in December.
Also Monday, Ebix announced it won an appeal regarding the dismissal of securities fraud claims against it and its officers levied as part of a class-action lawsuit filed in U.S. District Court for the Southern District of New York following the Hindenburg report.
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