US SEC Closes Investigation into Eros Media World plc and Affiliates; Internal Investigation Reveals No Wrongoing
Eros
Media
World
plc
(“EMW”
or
the
“Company”)
is
pleased
to
announce
that
the
Company’s
internal
review
of
certain
accounting
practices
and
internal
controls
has
been
concluded,
with
the
Audit
Committee
concluding
that
no
revenues
of
the
Company
recognized
during
the
fiscal
year
ended
March
31,
2020,
were
inappropriately
recognized,
and
finding
no
impairment
in
the
intangible
assets
and
goodwill
reflected
on
the
Company’s
Form
6-K
dated
March
31,
2021.
In
addition,
the
Audit
Committee
found
no
material
weaknesses
in
internal
controls
over
financial
reporting.
In
addition,
the
Company
is
pleased
to
announce
that
the
investigation
opened
by
the
United
States
Securities
and
Exchange
Commission
(“SEC”)
into
the
above
subject
matters,
among
other
issues,
has
been
closed,
with
the
SEC
not
recommending
an
enforcement
action
against
the
Company,
or
any
of
its
affiliates,
officers,
or
employees.
EMW
has
now
been
through
several
waves
of
short
attacks
by
short-sellers
such
as
Hindenburg
Research
(which
recently
announced
that
it
was
shutting
down)
as
well
as
three
separate
SEC
investigations.
The
Company
has
been
accused
of,
and
investigated
for:
allegedly
inflated
revenues,
alleged
false
and
misleading
financial
statements,
and
alleged
improper
related
party
transactions.
The
Company
is
pleased
that
all
three
SEC
investigations
looking
into
those
and
other
allegations
have
been
closed
without
further
action
taken
by
the
SEC.
“We
are
most
pleased
to
have
these
issues
behind
us
as
we
look
forward
to
a
new
future
for
the
Company,”
said
Kishore
Lulla,
Founder
&
Executive
Director
of
Eros
Media
World
Group.
“We
would
like
to
thank
our
United
States
counsel
for
their
brilliant
legal
representation
and
their
extraordinary
efforts
on
our
behalf:
Kenneth
E.
Lee
of
Levine
Lee
LLP,
lead
litigation
counsel
and
regular
outside
counsel;
Rachel
G.
Skaistis
of
Cravath,
Swaine
&
Moore
LLP,
SEC
counsel;
and
Victor
Hou
of
Cleary
Gottlieb
Steen
&
Hamilton
LLP.”
About
Eros
Media
World
plc
Eros
Media
World
Plc,
(“Eros”,
the
“Company”)
(NYSE:
EMWP)
is
a
global
media
and
entertainment
company
that
acquires,
co-produces
and
distributes
films,
digital
content
and
music
across
multiple
formats
such
as
theatrical,
television
and
emerging
web
3.0
ecosystem
to
consumers
around
the
world.
For
more
details
–
erosmediaworld.com.