New York, New York–(Newsfile Corp. – April 11, 2021) – Pomerantz LLP is investigating statements on behalf of buyers of Sequential Brands Group, Inc. (“Sequential” or the “Corporation”) (NASDAQ: SQBG). Such traders are suggested to make contact with Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation fears no matter if Sequential and specified of its officers and/or directors have engaged in securities fraud or other unlawful business enterprise practices.
On November 9, 2017, Sequential issued a press release entitled “Sequential Brand names Group Announces Third Quarter 2017 Monetary Benefits” (the “November 2017 Push Launch”). The November 2017 Push Launch announced that “[i]ncluded in the net reduction for the third quarter 2017 were non-money impairment expenses of $36.5 million for indefinite-lived intangible belongings related to the trademarks of five of the Company’s non-main brands[,]” marking the very first time the Enterprise famous its want for impairment costs similar to intangibles and its property normally. On this information, Sequential’s stock price tag fell $36.80 for every share, or 38%, to shut at $58.00 for every share on November 9, 2017.
Then, on February 28, 2018, Sequential issued a push release asserting a “goodwill adjustment signify[ing] a a single-time, non-funds charge of $304.1 million that was pushed by the Firm’s inventory rate for the duration of the fourth quarter-as well as the maximize in the Company’s e-book value linked to tax reform-which benefits in an assessed truthful value of equity that was significantly under its web e book worth.” On this information, Sequential’s inventory cost fell $6.80 per share, or 8%, to near at $76.00 for each share on February 28, 2018.
Finally, on December 11, 2020, the U.S. Securities and Exchange Fee (“SEC”) filed a criticism charging Sequential “with failing to impair its goodwill as necessary by accounting ideas and the federal securities laws.” The SEC grievance alleged, among the other issues, that “[b]y steering clear of an impairment to its goodwill in 2016, Sequential’s money statements and SEC filings materially understated its working fees and net decline and materially overstated its earnings from operations, goodwill, and total assets. This produced a false impact of its fiscal health and fitness and capability to execute on its business program. Sequential carried forward its materials glitches, resulting in content misstatements and omissions in Sequential’s monetary statements and SEC filings for the very first a few quarters of 2017.” On this news, Sequential’s inventory cost fell $2.03 for every share, or approximately 11%, to shut at $16.20 for every share on December 11, 2020.
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Robert S. Willoughby
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