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I like all of your points except that is problem of this issue. Its like a circular problem that can't go away. The SEC cant authenticate their books and the auditors are pointless because the whole theory of a fraud is that the auditors are either to ignorant or imcompetant to detect or they are in cohoots with the very fraud the shorts accuse EBIX of.

So once again how can EBIX or any other company disprove a falsity and restore faith?

Due diligence- As to the possible risk amounts, besides an outright fraud on a complete scale which is not the accusation, the accusations are related to the practices of booking revenues generated from acquisitions. Bare with me as I am doing this from memory but they seem to be mainly based on I believe Peak and one other. Now the amounts in question by the very companies who are in litigation are only a couple million. This can info can be replayed from the quarterly conference call given by Robin 2 qrtrs ago I believe. They were also discussed in the actual written warning of risk statement from them. Also the actual figures are in the current litigation EBIX is in. Even if there was an error amounting to these companies being paid the result would only be a couple million in damages. Now if and only if, EBIX is found guilty and the SEC did decide to investigate and found there was willful fraud would the SEC then actually punish with a fine. Even if the fines resulted in both some sort of damage compensation to shareholders and other parties and a fine for punishment they would still be at most what a few million. Even if they caused a total reworking of EBIX's accounting teams, accounting systems, attorney fees and some sort of possible tax issues (mind you this is all worst case hypotheticals with massive rounding and adding extra) how much could the result really be. What 10 million? Hech add another 10 (ridiculous but) so 20 million?

There were also multiple articles written on this topic. So like I said between 10k'S, litigation, Robin Raina and other articles there is plenty of due diligence to be had.

As to timing my point was time value of money-EBIX went from 25 to 15 and within like 3 days directly after the article went from 23 to 16 or approximately 270 million dollars in market cap wiped out. I am not nor was not invested but have been looking for the right entry point. That being said that kind of short attack is severley damaging and is not so easily dismissed. The company lost 40%in 2 months now. Those who bought at 23 had the right conclusions but what are they to do in the face of false accusations. If they hold they are stupid. If they sell they are stupid. More over all the big investors lost will not and do not have to come back making the next leg up even harder. Plus with every new level 17 then 18.50 then 20, etc... there will be more sellers created as those that heldon get back to even (investor psycology). Plus the stock was uptrending thus killing upside or at the very least massively delaying that uptrend. So I'm not exactly understanding what your rebutal to my point of Time value of money was about but trust me whacking 33% in like 2 days is very effective in keeping a stock price depressed whether deserved or not.

None the less the dilema remains- and my issue of banter is still open for any and all answers. If for nothing else a good intellectual/philosophical question and debate remain. How does a company with a good governance disprove claims like this. If anyone can say SEC is coming and the books are cooked. How does a company negate that.

As always please forgive improper grammar, spelling etc...
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