SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Eros International plc of Class Action Lawsuit and Upcoming Deadline - EROS
ACCESS Newswire
NEW YORK, NY / ACCESSWIRE / June 30, 2019 / Pomerantz LLP announces that a class action lawsuit has been filed against Eros International plc ("Eros" or the "Company") (EROS) and certain of its officers. The class action, filed in United States District Court, for or the District of New Jersery, and indexed under 19-cv-14445, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired publicly traded Eros securities from July 28, 2017 through June 5, 2019, inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Eros securities during the class period, you have until August 20, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby atrswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Eros, together with its subsidiaries, including its majority-owned subsidiary Eros International Media Limited ("EIML"), co-produces, acquires, and distributes Indian films in various formats worldwide. The Company distributes its film content through various distribution channels, including theaters, television syndication, internet channels, and physical formats comprising DVDs and video compact discs (VCDs). Further, it operates as a music publisher for third party owned music rights. Eros has rights for approximately 3,000 films in its library.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Eros's Indian subsidiary, EIML, was experiencing ongoing delays and default in debt servicing due to slowdown in collection from debtors; (ii) because of this, Eros's financial position was weaker than what the Company disclosed; (iii) the foregoing conduct foreseeably would result in a credit downgrade for the Company's subsidiary; and (iv) as a result, Eros's public statements were materially false and misleading at all relevant times.
On June 5, 2019, CARE Ratings ("CARE"), India's second largest credit ratings agency, downgraded EIML's credit rating for its long-term loan facilities to "D" or default from BBB-, a significant downgrade of several notches in credit grades.
In a public statement, CARE explained: "As per the management, the delays/default in debt servicing is on account of slowdown in collection from debtors leading to cash flow issues in the company[.]"
It was reported that CARE interacted with EIML's bankers. The defaults/delays included both principal repayments and interest payments. In some cases, delays extended to more than 30 days for servicing interest on cash credit and packing credit, and a delay of more than 30 days in payment of bills.
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, Eros's stock price fell $3.59 per share, 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 entitled "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, Eros's stock price fell another $0.41 per share, or over 11%, to close at $3.30 per share on June 7, 2019, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
