INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Eros International P...
August 03 2019 - 9:45AM
Business Wire
The law firm of Kirby McInerney LLP announces that a class
action lawsuit has been filed in the U.S. District Court of New
Jersey on behalf of those who acquired Eros International PLC
(“Eros” or the “Company”) (NYSE: EROS) securities during the period
from July 28, 2017 to June 5, 2019 (the “Class Period”). Investors
have until August 20, 2019 to apply to the Court to be appointed as
lead plaintiff in the lawsuit.
According to the lawsuit Eros made false and/or misleading
statements and/or failed to disclose that: (i) the Company 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; and (iii) consequently,
the Company’s Indian subsidiary, Eros International Media Ltd,
missed loan payments and had its credit downgraded.
On June 5, 2019, Eros’s majority owned subsidiary Eros
International Media’s long-term bank facilities rating was cut by
10 notches to D from BBB- following “ongoing delays/default in debt
servicing due to a slowdown in collection from debtors.” On this
news, Eros’s share price fell $3.59, approximately 49%, to close at
$3.71 on June 6, 2019.
Then, on June 7, 2019, Hindenburg Research published an article
explaining that 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, Eros’s share price fell $0.41,
approximately 11%, to close at $3.30 on June 7, 2019.
If you acquired Eros securities during the Class Period, have
information, or would like to learn more about these claims, please
contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by
email at investigations@kmllp.com, or by filling out this contact
form, to discuss your rights or interests with respect to these
matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm
concentrating in securities, antitrust, and whistleblower
litigation. The firm’s efforts on behalf of shareholders in
securities litigation have resulted in recoveries totaling billions
of dollars. Additional information about the firm can be found at
Kirby McInerney’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20190803005001/en/
Kirby McInerney LLP Thomas W. Elrod, Esq., (212) 371-6600
investigations@kmllp.com www.kmllp.com
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