Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Eros International, Plc To Contact The Firm
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, 2019 and would like to discuss your legal rights, please fill out the form below. 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 firstname.lastname@example.org.
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.
Eros International Plc (EROS)
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Filed on 06/13/2019
Ticker NYSE: EROS
Lead Plaintiff Deadline 08/20/2019
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