NEW YORK, July 19, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Eros International, Plc ("Eros" or the "Company") (NYSE: EROS) of the August 20, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Eros stock or options between July 28, 2017 – June 5, 2019and would like to discuss your legal rights, click here:www.faruqilaw.com/EROS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected].
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Eros securities between July 28, 2017 and June 5, 2019 (the "Class Period"). The case, Montesano v. Eros International Plc, No. 2:19-cv-14125 was filed on June 21, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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 the Company disclosed; (3) consequently, the Company's Indian subsidiary, Eros International Media Ltd ("EIML"), missed loan payments and had its credit downgraded; and (4) due to the foregoing, 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.
On June 5, 2019, CARE Ratings, India's second largest credit ratings agency, downgraded EIML's credit rating to "Default" because of "ongoing delays/default in debt servicing due to slowdown in collection from debtors."
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 stock fell from $7.30 per share on June 5, 2019 to $3.71 per share on June 6, 2019– a $3.59 or 49.17% drop.
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 stock fell from $3.71 per share on June 5, 2019 to $3.30 per share on June 7, 2019– a $0.41 or 11.05% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Eros's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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