Ebix Inc (NASDAQ:EBIX) shares were still getting pounded Friday afternoon, and the company provided an answer to the media reports and the pending investigation, which was the downward catalyst for the company’s plummeting stock price. Street Insider reports that the company approved a $100 million common stock repurchase program.

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Details On Ebix’s Buyback Plan

The plan calls for Ebix to buy back up to $100 million of its common shares over the next 24 months. It plans to buy the shares using its cash on hand as well as future cash flow from its operations. Ebix Inc (NASDAQ:EBIX) has about $35.5 million in cash on hand globally. Last year the company’s free cash flow was reported to be $65.3 million, not counting the cash it used to acquire other businesses during that year.

Ebix said it decided to authorize the share buyback as a way to enhance value for its shareholders. The company said it believes that allegations made “in the media and elsewhere are without merit.” Analysis from Gotham City Research said this week that the company’s low effective tax rate is not sustainable and that its stock is likely headed down to zero. Some of these reports were covered on various sites, including ValueWalk.

Merger With Goldman Sachs Called Off

Earlier this week, Ebix Inc (NASDAQ:EBIX) and the Goldman Sachs & Co. affiliate which were planning to merge called that merger off. The companies made the decision to do that because the U.S. Attorney’s office opened a new investigation into Ebix.

Ebix said the investigation is still in its early stages and that it’s too early to know if it violated any laws or if any of its employees may be a target, subject or witness in the investigation.

As of this writing, shares of Ebix were down almost 13 percent, but they had dipped as low as 15 percent at one point during the day.