SAN DIEGO & SECAUCUS, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Eros International PLC (NYSE: EROS) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between July 28, 2017 and June 5, 2019. Eros International and its subsidiaries co-produce, acquire, and distribute Indian films in various formats worldwide.
View this information on the law firm's Shareholder Rights Blog:
Eros Accused of Fabricating Trade Receivables to Mislead Shareholders
According to the complaint, Eros issued a series of misleading and materially false reports that failed to disclose the reality of its weak financial position and falsely assured the effectiveness of the company's financial reporting. In reality, many of the receivables touted in these reports did not exist but were rather a result of Eros and its executives using related-party transactions to fabricate trade receivables. Despite this attempt to hide their true financial position, Eros' Indian subsidiary missed loan payments and its credit rating was downgraded to "Default" in June 2019 because of "ongoing delays/default in debt servicing due to slowdown in collection from debtors." On this news, Eros shares fell $3.59, over 49%, to close at $3.71. The next day, Hindenburg Research published an article revealing Eros' accounting irregularities and its executives' scheme to hide receivables. On this news, the stock dropped another 11% and has since continued to fall. Today the stock trades at $2.20.
Eros International Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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