Eros Media World | EMWP (ex Eros International | EROS) $25M Investor Settlement
Eros Media World | EMWP (ex Eros International | EROS) agreed to settle $25 million with its investors in litigation over the use of related-party transactions to fabricate receivables.
The Complaint alleged that the Company and its Leaders made false and/or misleading statements and/or failed to disclose that:
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;
because of this scheme, Eros’s financial position was weaker than what the Company disclosed;
consequently, the Company’s Indian subsidiary missed loan payments and had its credit downgraded; and
Due to the foregoing, the statements about Eros’s receivables, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.