Eros investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Eros is a leading company in the Indian film entertainment industry and co-produces, acquires and distributes Indian language films in multiple formats worldwide.
The Class Period commences on July 28, 2017, when Eros issued a press release containing its financial results for the fiscal year 2017, ended March 31, 2017.
The complaint alleges that, on June 5, 2019, CARE Ratings, India’s second largest credit ratings agency, downgraded the credit rating for Eros’s Indian subsidiary, Eros International Media Ltd (“EIML”), to “Default” because of “ongoing delays/default in debt servicing due to slowdown in collection from debtors.” Then, on June 6, 2019, Eros issued a press release admitting that EIML was late on two loan interest payments for April and May 2019. Following this news, shares of Eros fell $3.59 or over 49% to close at $3.71 per share on June 6, 2019.
The following day, Hindenburg Research published an article entitled “Eros International: On-The-Ground Research, Employee Interviews, and Private Company Documents Expose Egregious Accounting Irregularities,” explaining the reason for the downgrade of EIML. The article stated, among other things, that “a significant portion of Eros’s receivables don’t exist” and that they have documented “multiple undisclosed related-party transactions that appear designed to hide receivables.”
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Eros and its executives engaged in a scheme to use related-party transactions to fabricate receivables that they reported in Eros’s public financial disclosures; (2) because of this scheme, Eros’s financial position was weaker than what Eros disclosed; (3) consequently, EIML missed loan payments and had its credit downgraded; and (4) due to the foregoing, the defendants’ statements about Eros’s receivables, business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you are a member of the class described above, you may no later than August 20, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
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