Ebix, Inc., 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.
Ebix continues to believe this lawsuit is without merit and is fully
cooperating with the regulatory authorities as they conduct their
investigations.
The Company also disclosed that the breach of contract litigation in Isaac, et
al. vs. Ebix, Inc. remains pending. On March 26, 2012, the federal court judge
dismissed, as lacking in merit, all the fraud claims asserted by Mr. Isaac and
his fellow plaintiffs. The plaintiffs' case is proceeding as a breach of
contract suit. Ebix has filed counterclaims for breach of contract and unjust
enrichment. The litigation is presently in the discovery phase.
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