March 8, 2017
Contributed by FG Alpha Management for GeoInvesting, LLC
- An amended class action securities complaint cites testimony from an Indian filmmaker and Eros co-producer as a confidential witness
- This confidential witness claims that "Eros channels money to family members through dummy production deals"
- This claim seems to lend validation to longstanding allegations of fraud and misdealing made against Eros by various short sellers
- The company's LeEco prepaid phone bundling partnership, supposedly responsible for a substantial amount of paid ErosNow subscribers, has come and gone without explanation from management
- The company's struggles with collecting on its accounts receivable continue and we call into question the company's ability to ever achieve a cash flow neutral or cash flow positive position
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