After the markets closed on February 19, 2021, Ebix announced that RSM US LLP, Ebix's independent registered public accounting firm, had resigned on February 15, 2021. In its resignation letter, RSM stated that it was "unable, despite repeated inquiries, to obtain appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020." RSM further stated that it had identified a material weakness because Ebix's "management did not design or implement the necessary procedures and controls over the gift or prepaid card revenue transaction cycle to prevent or detect a material misstatement." The market was stunned by this announcement, with shares falling approximately 40% on February 22, 2021, wiping out hundreds of millions of dollars of market capitalization.