A law office recently announced the securities class action settlement hearing for shareholders of an insurance development software outsourcing company, which will determine if the payment level for those who own stock is just.
Law firm Faruqi and Faruqi, LLP, noted that the lawsuit against Ebix, Inc., which was filed in the U.S. District Court for the Northern District of Georgia, will have a hearing on June 5, 2014. This will determine whether or not the settlement of $6.5 million in cash is adequate and fair for all parties involved. It also will determine if the lawsuit against Ebix will be dismissed. Further issues involve how the money will be allocated among shareholders and if the attorneys' fees and other expenses such as the lead plaintiff award are reasonable.
Any shareholders in Ebix stock who purchased interests during the class period between May 6, 2009, and June 30, 2011 may be affected by this settlement. It is important that all members of the class receive the notice of the proposed settlement of class action, as well as the proof of claim and release. The latter document needs to be submitted to the court by June 4, 2014 in order to be eligible to recover funds. Objections should also be filed with the court by May 6, 2014.
Company defends conduct
Ebix made an announcement back in February detailing the preliminary issues regarding the settlement situation with shareholders. This noted that it denied the allegations made in the securities class action lawsuit, filed back in 2011 in the U.S. District Court for the Northern District of Georgia on behalf of stockholders.
Specifically, the company noted that the company agreed the settlement amount, not to concede any guilt, but to stop any uncertainties, as well as risk and expense of any continued business issues.
"We are pleased to settle this litigation matter and move forward with the development of our business," said Robin Raina, chairman, president and CEO of Ebix.
During the release of the third quarter of 2013's Form 10-Q, Ebix noted that it charged approximately $4.23 million for the settlement. This was the section of the settlement that the company put aside in response to the settlement, and it does not feel that any other legal expenses will come from this litigation in the future.