LOS ANGELES–(BUSINESS WIRE)–$EROS #CLASSACTION—Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired Eros International Plc (“Eros” or the “Company”) (NYSE: EROS) securities between July 28, 2017 and June 5, 2019, inclusive (the “Class Period”). Eros investors have until August 20, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to [email protected], or visit our website at www.glancylaw.com.
On June 5, 2019, the Company’s Indian subsidiary’s credit rating was downgraded to “Default” by India’s second largest credit ratings agency over concerns of “ongoing delays/default in debt servicing due to slowdown in collection from debtors.”
On this news, the Company’s share price fell $3.59, or nearly 49%, to close at $3.71 on June 6, 2019, thereby injuring investors.
Then, on June 7, 2019, an article published by Hindenburg Research explained that the reason for the credit downgrade was due to “multiple undisclosed related-party transactions that appear designed to hide receivables”, and that “a significant portion of Eros’s receivables don’t exist.”
On this news, the Company’s share price fell an additional $0.41, or nearly 12%, to close at $3.30 on June 7, 2019, thereby further injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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 the Company disclosed; (3) consequently, the Company’s Indian subsidiary, Eros International Media Ltd (“EIML”), missed loan payments and had its credit downgraded; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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If you purchased shares of Eros during the Class Period you may move the Court no later than August 20, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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