NEW YORK--(BUSINESS WIRE)--Wolf Haldenstein Adler Freeman & Herz LLP announces that it has commenced an investigation of Eros International plc ("Eros" or the "Company") (NYSE:EROS) concerning possible violations of federal securities laws by the Company and/or certain of its officers and directors.
On October 30, 2015, Seeking Alpha published a report alleging that "due to aggressive accounting practices, Eros' reported earnings are significantly overstating the economic reality of its business model" and that the Company's subsidiary financials "reveal a lack of free cash flow and raise many questions about the company's accounting." The report also alleges that management engaged in related-party transactions and the Company "appears to have made meaningful misstatements to investors."
This week, on November 10, 2015, Seeking Alpha, following up on its October 30th report about the Company, reported that Eros "has overstated its theatrical revenue by 82% and 104% during fiscal years 2014 and 2015, respectively" and "overstated the number of movies it has distributed by 124% and 200% during fiscal years 2014 and 2015, respectively."
On this news, the Company's stock price fell more than 31% to close at $8.25 on Wednesday, resulting in a loss of more than $100 million in the Company's market capitalization. Since peaking at $39.01 on August 13, 2015, the company has lost close to $1 billion in market capitalization.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Eros Investigation.”
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