Company violated Securities Exchange Act, alleges law firm.
AB Wire
A class action lawsuit has been filed against Eros International by the law form of Ryan & Maniskas, LLP, in the United States District Court for the District of New Jersey, on behalf of all persons or entities that purchased the common stock of the film distribution company.
Eros shareholders may, no later than January 12, 2016, move the court for appointment as a lead plaintiff of the lawsuit, according to the law firm. It advised any individuals who want to be part of the lawsuit to get in touch with them.
Eros is a global company in the Indian film entertainment industry. It co-produces, acquires and distributes Indian language firms in multiple formats worldwide. The company is incorporated in the Isle of Man and maintains its US executive offices in Secaucus, New Jersey.
The complaint brings forth claims for violations of the Securities Exchange Act of 1934. The complaint alleges that throughout the Class Period, Eros International made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.
According to the lawsuit, specifically, Eros International made false and/or misleading statements and/or failed to disclose that: (1) the company lacked adequate internal controls; (2) Eros enriched its controlling family at the shareholders’ expense through a serious of related-party transactions; (3) the company overstated the number of movies it had distributed during fiscal years 2014 and 2015; (4) the company overstated its theatrical revenue during fiscal years 2014 and 2015; (5) as a result, Eros’ financial results and operating metrics were overstated; (6) the company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); and (7) as a result of the foregoing, defendants’ statements about Eros’ business, operations, and prospects were materially false and/or misleading at all relevant times.
Ryan & Maniskas, LLP is a national shareholder litigation firm.