Shares of Ebix (NAS: EBIX) fell as much as 31% in early trading today after Bloomberg published a report that said the company's accounting practices are under investigation by the Securities and Exchange Commission. Ebix responded in a press release calling the story "inaccurate and misleading."
"The Ebix senior management team has not been advised of nor is it aware of any SEC investigation regarding the Company's previous filings," CEO Robin Raina said in a press release. "We stand behind the accuracy of our public filings. The Bloomberg article is inaccurate and misleading in many respects and we intend to evaluate all avenues of recourse."
Bloomberg says the SEC's investigation was conducted over the past year and is focused on revenue recognition, internal controls, and the accuracy of its public statements to shareholders. The report cites four unnamed sources Bloomberg says possess "direct knowledge of the probe."
The stock, which Ebix says is being targeted by short-sellers, is down more than 15% year to date.
The article Ebix Denies Bloomberg Report of SEC Probe originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home, portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader. Motley Fool newsletter services have recommended buying shares of Ebix. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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