NEW YORK--(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.
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