US SEC closes perusal into Eros Media World with no enforcement action

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US SEC closes perusal into Eros Media World with no enforcement action

Internal review finds no wrongdoing in revenues, assets, or internal controls

Eros Media

MUMBAI: Eros Media World plc (EMW) can finally breathe a sigh of relief. Following a thorough internal review and multiple investigations by the United States Securities and Exchange Commission (SEC), the company has emerged unscathed, with the SEC officially closing its inquiry without recommending any enforcement action.

An internal investigation by EMW’s audit committee concluded that the company’s accounting practices and internal controls were sound. The review found that:

1    No revenues for the fiscal year ending 31 March 2020, were improperly recognised.

2    No impairments existed in intangible assets or goodwill as stated in the company’s Form 6-K dated 31 March 2021.

3    No material weaknesses were identified in internal controls over financial reporting.

These findings marked a decisive end to allegations of inflated revenues, misleading financial statements, and improper related-party transactions, which had triggered three separate SEC investigations.

Eros Media World has faced waves of criticism and short attacks from entities like Hindenburg Research, which itself recently announced its closure. However, the conclusion of these investigations without any adverse action underscores EMW’s commitment to transparency and compliance.

“We are most pleased to have these issues behind us as we look forward to a new future for the company,” said Eros Media World group founder & ED Kishore Lulla.

Lulla extended gratitude to the company’s legal team for their exceptional representation throughout this challenging period:

1    Levine Lee LLP, Kenneth E. Lee led litigation and outside counsel.

2    Cravath, Swaine & Moore LLP, Rachel G. Skaistis SEC counsel.

3    Cleary Gottlieb Steen & Hamilton LLP Victor Hou.

With the investigations closed and the company cleared of allegations, EMW is charting a new course for growth and innovation in the media and entertainment space. The closure of these cases allows the company to refocus on its core mission while reinforcing its commitment to ethical practices and transparency.