Key Points:
On February 9, 2021, the New York Appellate Division, First Department, affirmed the dismissal of a defamation action brought by Eros International plc, an Indian media company, against several short sellers based on a series of investor reports, tweets and public statements questioning the accuracy of Eros’s reported financials.
In affirming the decision below, the court agreed that the investors’ statements were constitutionally protected opinion based on each statement’s disclosure of underlying facts and the use of speculative language.
The decision emphasizes that critical statements concerning third parties must be made carefully and joins a growing body of precedent protecting investment analysts from lawsuits aimed at chilling free speech.