Goldman Abandons Acquisition, 'Fabulous Fab' Setback

Fabrice Tourre Still

Goldman Sachs has terminated an agreement to acquire Ebix Inc after the insurance software maker said it was told that federal prosecutors had opened an investigation.

Bloomberg reports that the U.S. Attorney in Atlanta wrote in a letter that it was probing allegations of intentional misconduct, Ebix said Thursday in a statement.

The company previously disclosed that it faced shareholder class-action lawsuits and a U.S. Securities and Exchange Commission probe over the accuracy of the firm’s public statements to investors.

'The allegations in the class-action suits are without merit', Ebix CEO Robin Raina said in the statement. 'We want to thank Goldman Sachs for their interest in acquiring Ebix and we are naturally disappointed that we could not complete a transaction at this time'.

In the meantime, Reuters reports that a U.S. federal judge on Wednesday limited the extent to which former Goldman Sachs vice president Fabrice Tourre can argue that he was acting on the advice of company lawyers in his defense against charges that he misled investors.

The ruling could be another setback for Tourre ahead of his trial on July 15, after the judge earlier this month rejected his argument that the U.S. Securities and Exchange Commission should narrow its case against him.

Goldman Sachs Abandons Ebix Deal as U.S. Prosecutors Open Probe

U.S. judge limits ex-Goldman Sachs exec's defense in fraud case

 

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts