Shareholders of software manufacturer Ebix Inc. can pursue claims against the company for alleged misstatements about an acquisition bonus agreement its CEO was slated to receive prior to a failed $820 million buyout bid by Goldman Sachs Group Inc., the Delaware Court of Chancery has ruled.
Goldman Sachs agreed in May 2013 to acquire Ebix, an Atlanta-based manufacturer of software for the insurance industry, for $20 per share or $820 million, according to court documents. Shortly after the announcement, Ebix, a Delaware corporation, announced that it received a letter from federal prosecutors that they had opened an investigation into inadequate financial disclosures and improper accounting practices, according to court documents.
