Eros International PLC
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who acquired Eros International PLC shares (“EROS,” or the “Company”) (NYSE: EROS) between July 28, 2017 and June 5, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover EROS shareholders’ investment losses.
If you purchased shares of Eros International PLC between July 28, 2017 and June 5, 2019 and would like to join the action, please click “Join Class Action” above.
EROS CLASS ACTION DEADLINE: Bernstein Liebhard LLP Announces That A Securities Class Action Lawsuit Has Been Filed Against Eros International PLC – EROS
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who acquired Eros International PLC shares (“EROS,” or the “Company”) (NYSE: EROS) between July 28, 2017 and June 5, 2019, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of New Jersey to recover damages for EROS investors under the Securities Exchange Act of 1934.
According to the lawsuit, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) because of this scheme, EROS’s financial position was weaker than what the Company disclosed; (iii) consequently, the Company’s Indian subsidiary, Eros International Media Ltd (“EIML”), missed loan payments and had its credit downgraded; and (iv) due to the foregoing, Defendants’ statements about EROS’s receivables, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On June 5, 2019, CARE Ratings, India’s second largest credit ratings agency, downgraded EIML’s credit rating to “Default” because of “ongoing delays/default in debt servicing due to slowdown in collection from debtors.” On June 6, 2019, EROS issued a press release admitting that EIML was late on two loan interest payments for April and May 2019.
On this news, shares of EROS fell $3.59 or over 49% to close at $3.71 per share on June 6, 2019, damaging investors. The next day, before the market opened, Hindenburg Research published an article titled “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.”
On this news, shares of EROS fell another $.41 or over 11% to close at $3.30 per share on June 7, 2019, damaging investors.
If you wish to serve as lead plaintiff in the class action, you must move the court no later than August 20, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero
Bernstein Liebhard LLP