Following the stock downgrade by Wells Fargo over some of its UAE revenues, Eros International has issued a clarification on the Bombay Stock Exchange to explain its position and has hired U.S. law firm Skadden, Arps, Slate, Meagher & Flom LLP to conduct an independent internal review. Eros' stock has taken a beating on both the Bombay Stock Exchange and the New York Stock Exchange over the past two weeks and hit a year-low following a report by the Times of India which said that attorneys in the US had started investigating the company which could leave it open to class action lawsuits. The report had added that Eros was being investigated by law firms Steinmeyer Law, Rosen Law Firm and Bronstein, Gewirtz and Grossman for violating certain sections of the Securities Exchange Act of 1934. Eros's stock on the BSE was up 7.87% at the time of publication following the clarification. Countering the report, Eros said: “In the past two weeks, there has been a vicious campaign to damage the credibility of Eros International by spreading false rumors and misinformation regarding its business with an objective to create panic amongst the investor community." "We are confident in our business fundamentals and we will be announcing our Q2 FY2016 results in the first half of November. Our credibility and reputation are of paramount importance. Our Audit Committee has engaged the U.S. law firm Skadden, Arps, Slate, Meagher & Flom LLP to conduct an independent internal review and also to advise us on related matters." Clarification…
