We are investigating Eros International Plc (EROS) (“Eros” or the “Company”) for potential violations of the federal securities laws.
On June 5, 2019, Eros’s Indian subsidiary’s credit rating was downgraded to “Default” by India’s second-largest credit ratings agency over concerns of “ongoing delays/default in debt servicing due to slowdown in collection from debtors.” On this news, Eros’s stock price fell $3.59, or nearly 49%, to close at $3.71 on June 6, 2019. Then, on June 7, 2019, an article published by Hindenburg Research explained that the credit downgrade was due to “multiple undisclosed related-party transactions that appear designed to hide receivables,” and that “a significant portion of Eros’s receivables don’t exist.” On this news, Eros’s stock price fell an additional $0.41, or nearly 12%, to close at $3.30 on June 7, 2019.