Bloomberg Challenges Court Order to Remove Article on Zee Entertainment Amid SEBI Accounting Irregularities Claim
Bloomberg, a media company, has challenged a court order in Delhi High Court that asked them to remove an article about Zee Entertainment. The article claimed that SEBI found accounting issues of around US $240 million at Zee Entertainment. The High Court has agreed to hear the case urgently on March 7, 2024.
On March 1, 2024, a city court directed Bloomberg to take down the article within a week, stating that it had to be removed from its online platform. The court also prohibited Bloomberg from posting, circulating, or publishing the article about Zee Entertainment both online and offline until the next hearing.
This order came after Zee Entertainment filed a suit against Bloomberg, claiming that the article damaged its reputation. The Bloomberg article, titled “India Regulator Uncovers $241 Million Accounting Issue at Zee,” was deemed defamatory by Zee Entertainment, causing a 15% drop in the company’s share price and eroding investor wealth.
Zee Entertainment argued in court that the Bloomberg article was false, factually incorrect, and published with the intention to defame the company. The article mentioned inaccurate details about Zee’s corporate governance and business operations, alleging financial irregularities without any basis from the Securities and Exchange Board of India (SEBI).
The city court, in a 4-page order, stated that Zee Entertainment had made a prima facie case for an interim injunction. It ruled in favor of Zee Entertainment, stating that irreparable harm could occur if the injunction was not granted. As a result, Bloomberg was directed to take down the article from its online platform within one week of receiving the court order.
