Ebix, Inc. (NASDAQ: EBIX) said that on February 4, 2014, the United States District Court for the Northern District of Georgia entered an order granting preliminary approval of the agreement among the parties to settle all claims in the shareholder securities class action styled In re Ebix, Inc. Securities Litigation, Master File No. 1: 11-CV-02400-RWS (N.D. Ga.).
The case was filed in 2011 on behalf of a class consisting of those persons who purchased or otherwise acquired the company´s common stock between May 6, 2009, and June 30, 2011. The agreement calls for a one-time cash payment of USD6.5m to be funded by the company and its insurance carrier. The Court scheduled a final fairness hearing on the settlement for June 5, 2014.
Under the terms of the agreement, the company and certain current officers and directors deny any and all of the allegations made against them by the class in the litigation and have agreed to settle this matter solely to eliminate the uncertainties, risk, and expense of further protracted proceedings. The agreement to settle this litigation constitutes neither an admission nor acceptance of fault by any named Defendant with respect to the allegations made in the litigation.
An international supplier of on-demand software and e-commerce services to the insurance industry, Ebix provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry. Its website is at www.ebix.com.