Home >Market >Stock-market-news >Eros International shares hit 1-year low

Mumbai: Shares of film production and distribution firm Eros International Media Ltd on Monday hit a one-year low after a Times of India report said that US attorneys have started investigating its US arm Eros International Plc.

In intra-day trade, the stock touched a low of 250.50, a level last seen on 13 November 2014. Since 24 September, the stock has fallen over 54.1%. Year-to-date, the stock is down 32.2%.

Three global investor rights law firms Steinmeyer Law, Rosen Law Firm and Bronstein, Gewirtz and Grossman issued separate statements about investigations concerning whether Eros and some of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, the Times of India report said.

The reports alleged that the company may have issued misleading business information to the investing public. This could potentially expose Eros to class action lawsuits, the report added.

According to a 24 October Bloomberg report, Wells Fargo analyst Eric Katz cut his rating on the shares to market perform, saying he wasn’t comfortable with explanations about the company’s growing business in the UAE. Eros, based in Secaucus, New Jersey, distributes Indian-made films.

“We still don’t know the largest content buyers driving this increase, and we aren’t fully comfortable with the fact that nearly half of the revenue originates outside of India," Katz wrote in his note, according to the Bloomberg report.

On Friday, in the US trading session, shares of Eros International Plc (the US listed entity) fell 13.14% to $11.17 per share. Since mid-October, the shares have fallen 65.3%.

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