×
You will be redirected back to your article in seconds

Eros Takes Legal Action Against Short Sellers

Eros International, the leading multinational distributor of Indian movies, has filed a lawsuit against companies and individuals which have shorted its stock and allegedly spread misinformation.

Eros says that the case was filed in New York County Supreme Court against Mangrove Partners, Manuel P. Asensio, GeoInvesting, LLC, and others.  It alleges a conspiracy to disseminate material false and defamatory information about Eros and misconduct that has harmed the company. “Eros seeks damages and injunctive relief for defamation, trade libel, civil conspiracy, and tortious interference,” it said in a statement.

Eros, which has its legal seat in the Isle of Man and is managed from London, shifted its share listing from London to the New York Stock Exchange. It hoped that it would find more analyst coverage and a deeper market.

GeoInvesting is only one short seller that has attacked Eros. The company has been the object of numerous and repeated short selling attacks – also known as short squeezes – in which investors holding short positions in the stock have released proprietary research that would cause the share price to drop. Another short seller to have published lengthy research documents online is Alpha Exposure. That is believed to be the alias of a Bollywood insider.

The researchers suggest that Eros: inflated the number of films it released in a year; overstated theatrical revenues by as much as 104% in 2015; understated the revenues earned in India by booking income in Mauritius and the UAE; falsified TV and digital revenues; and used unsafe means of amortization. Eros noted that last month another New York court dismissed a class action suit brought against it by short sellers.

The short selling and investor attacks have taken some toll. In March, it chose to forgo an opportunistic bond sale, after its shares plunged 12% following a GeoInvesting report.

In the past year Eros shares have ranged from $6.65 to $18.85. At its current $14.8 price, the company has a market capitalization of $910 million. It is the distributor of “Newton,” this year’s Indian selection for the foreign-language Oscar category.

More Biz

  • Matt Lauer Kurt Sutter

    From Sutter to Lauer, Hollywood Sees a Flurry of Letters From the Edge (Column)

    Let’s talk about the whacked-out letters that hit the media sphere in the past eight days. One was that bizarre mea culpa dropped Oct. 17 by the no-holds-barred showrunner Kurt Sutter in response to getting canned from his series “Mayans MC.” No stranger to complaints of unprofessional behavior on his sets over the years, Sutter [...]

  • ICM Partners

    ICM Partners Promotes Victoria Gutierrez, Charlotte Lichtman and Brittany Perlmuter

    ICM Partners has promoted three — Victoria Gutierrez, Charlotte Lichtman and Brittany Perlmuter — to agent. Gutierrez will work in the concerts department, Lichtman will be an agent in the international and independent film department and Perlmuter moves to the talent department focusing on comedy. Gutierrez started her career at ICM Partners in 2014, working [...]

  • The Netflix logo is displayed at

    Netflix Stock Falls After Verizon Announces Disney Plus One-Year Giveaway

    Netflix investors, already skittish about the looming entry of Disney and Apple into the competitive streaming space, pushed the stock down as much as 4% in morning trading Tuesday. The drop came after Verizon announced a deal with Disney to offer Disney Plus for 12 months free to all unlimited wireless customers and new Fios [...]

  • Money-Logo

    Meredith Sells Money Personal-Finance Site to Digital Advertising Firm

    After previously failing to find a buyer for Money — and shutting down the print edition — Meredith has found a new home for the personal-finance brand. Meredith announced Tuesday that it closed the sale of the Money brand to Ad Practitioners, a Puerto Rico-based digital advertising and media company that operates a network of [...]

  • Juice WRLD Sued by Yellowcard for

    Juice WRLD Sued by Yellowcard for $15 Million Over ‘Lucid Dreams’

    Juice WRLD has been sued by the pop-punk band Yellowcard for $15 million, who claim that the rapper’s 2017 song “Lucid Dreams” copies melodic elements of their song “Holly Wood Died,” according to a report in The Blast, citing court documents. The band, which split in 2017, are seeking $15 million, royalties and credit for co-ownership of [...]

  • Isaac Perlmutter Disney Marvel

    Does Kevin Feige's Marvel Promotion Mean Ike Perlmutter's Endgame?

    Last week’s move giving Kevin Feige charge of Marvel’s television, animation and print editorial operations should come as no surprise. As the architect of the company’s enormous film success, Feige arguably has the most enviable track record of any contemporary entertainment executive. Extending his creative control over more of the Marvel universe seems like a [...]

  • Walt Disney HQ LA

    Disney Seeks to Throw Out Gender Pay Gap Lawsuit

    The Walt Disney Co. is seeking to throw out a lawsuit alleging that women employees are paid less than men, arguing that the suit is too sprawling and unwieldy to handle as a class action. Andrus Anderson LLP filed the suit in April, alleging that Disney’s hiring and pay practices have a discriminatory effect on [...]

More From Our Brands

Access exclusive content