Eros Media World vindicated as US SEC investigation concludes

Eros Media World Plc, a global media and entertainment powerhouse, has announced the successful conclusion of an internal review into its accounting practices and internal controls, alongside the closure of a U.S. Securities and Exchange Commission (SEC) investigation into the Company and its affiliates without any enforcement action.

The Company’s Audit Committee conducted an exhaustive review of financial practices and concluded that revenues recognized for the fiscal year ending March 31, 2020, were appropriately recorded. Furthermore, the review found no impairment of intangible assets and goodwill as reflected in the Company’s Form 6-K dated March 31, 2021, and identified no material weaknesses in its internal controls over financial reporting.

Separately, the SEC investigation into issues such as revenue recognition, financial disclosures, and related party transactions has been closed, with no recommendations for enforcement action against the Company, its affiliates, officers, or employees. This marks the conclusion of three SEC investigations into Eros Media World in recent years, all of which ended without further action.

EMW had faced allegations from short-sellers, including Hindenburg Research, of inflated revenues, misleading financial statements, and improper related-party transactions. The Company has consistently maintained its innocence and is now vindicated by the results of the investigations.

“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. He also expressed gratitude to the Company’s U.S. legal counsel for their exceptional representation, including Kenneth E. Lee of Levine Lee LLP, Rachel G. Skaistis of Cravath, Swaine & Moore LLP, and Victor Hou of Cleary Gottlieb Steen & Hamilton LLP.

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