Ebix partly rebounds after response to money laundering report

|About: Ebix Inc (EBIX)|By:, SA News Editor

Ebix (EBIX -7.5%) wound up erasing over half its intraday losses.  An official response provided by the company regarding a Bloomberg report (I, II) about an FBI money laundering investigation may have helped. Ebix reiterates its claim that money laundering allegations made against it are "false, inaccurate and likely to cause significant financial harm to Ebix shareholders."

Ebix criticized Bloomberg in a similar manner back in Nov. '12, in response to a report about an SEC accounting probe. Six months later, it was learned the SEC's probe had been upgraded to a formal investigation.

The U.S. Attorney's Office in Atlanta has not yet commented on the situation.

Ebix has faced numerous accusations regarding its accounting practices. SA contributor Sunil Shah argues media coverage (including Bloomberg's) has been hyperbolic.