RADNOR, Pa., July 5, 2019 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP alerts investors that a securities fraud class action lawsuit has been filed against Eros International plc (NYSE: EROS) ("Eros") on behalf of those who purchased or otherwise acquired Eros publicly traded securities between July 28, 2017 and June 5, 2019, inclusive (the "Class Period").
Investors who purchased Eros securities during the Class Period may, no later than August 20, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/eros-international-plc-securities-class-action.
According to the complaint, Eros is a leading company in the Indian film entertainment industry and co-produces, acquires and distributes Indian language films in multiple formats worldwide.
The Class Period commences on July 28, 2017, when Eros issued a press release containing its financial results for the fiscal year 2017, ended March 31, 2017.
The complaint alleges that, on June 5, 2019, CARE Ratings, India's second largest credit ratings agency, downgraded the credit rating for Eros's Indian subsidiary, Eros International Media Ltd ("EIML"), to "Default" because of "ongoing delays/default in debt servicing due to slowdown in collection from debtors." Then, on June 6, 2019, Eros issued a press release admitting that EIML was late on two loan interest payments for April and May 2019. Following this news, shares of Eros fell $3.59 or over 49% to close at $3.71 per share on June 6, 2019.
The following day, 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."
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Eros and its executives engaged in a scheme to use related-party transactions to fabricate receivables that they reported in Eros's public financial disclosures; (2) because of this scheme, Eros's financial position was weaker than what Eros disclosed; (3) consequently, EIML missed loan payments and had its credit downgraded; and (4) due to the foregoing, the defendants' statements about Eros's receivables, business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Eros investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or at [email protected].
Eros investors may, no later than August 20, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP