NEW YORK, Dec. 25, 2015 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Eros International Plc ("Eros" or the "Company") (NYSE: EROS) and certain of its officers. The class action, filed in United States District Court, District of New Jersey, is on behalf of a class consisting of all persons or entities who purchased Eros securities between June 17, 2014 and October 30, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged 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 January 12, 2016 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 at firstname.lastname@example.org 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 number of shares purchased.
Eros, together with its subsidiaries, co-produces, acquires, and distributes Indian language films in various formats worldwide. The Company distributes its film content across various distribution channels, such as theatrical, television syndication, and digital platforms. The Company also distributes its film content through physical formats, such as DVDs and video compact discs ("VCDs").
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) the Company's reported earnings significantly overstated the economic viability of Eros's business model; (ii) the Company's accounting policy for amortization was unjustifiably aggressive in light of the impact of piracy on the long-term value of Eros's assets; (iii) despite the Company's reported profitability, Eros generates no cash; (iv) Eros has only been able to stay afloat by issuing stock and taking on debt; (v) Eros significantly overstated the number of movies the Company distributed and the Company's theatrical revenues during fiscal years 2014 and 2015; and (vi) as a result of the foregoing, Eros's public statements were materially false and misleading at all relevant times.
On October 30, 2015, the investment blog Alpha Exposure published a report entitled "Unlike the name, investors should not love EROS" (the Alpha Exposure Report"). As a result of this news, shares of Eros fell $1.69, or 13.4%, to close at $11.17 on October 30, 2015.
On November 10, 2015, Seeking Alpha published a report entitled "Eros: Return of the Short Seller (2015)" (the "Seeking Alpha Report"). As a result of this news, shares of Eros fell $4.12, or 33.3% over the next two days, to close at $8.25 on November 11, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 70 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
Robert S. Willoughby
SOURCE Pomerantz LLP