SAN FRANCISCO, April 16, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on Sequential Brands Group, Inc. (NASDAQ: SQBG) Investors with significant losses can file their losses now.
Sequential Brands Group, Inc. (NASDAQ: SQBG) class action lawsuit against securities fraud:
The lawsuit alleges that Sequential Brands artificially inflated the reported values of assets on its balance sheet. In particular, over the past several years the company has provided regular reassurance to investors that Sequential Brands’ financial statements, including goodwill and operating expenses, are in accordance with GAAP.
In truth, according to the complaint, the company knew by late 2016 that its goodwill was likely to be impaired, delayed depreciation in late 2016 to 2017, and underestimated operating costs and net losses (thereby overestimating operating income).
The truth emerged on November 9, 2017 when Sequential Brands reported a charge of $ 36.5 million on certain intangible assets with indefinite lives and goodwill listed at $ 304 million. About three months later, on February 28, 2018, Sequential Brands announced that it had encumbered $ 304 million in goodwill. These events caused Sequential Brands stock to fall.
On December 11, 2020, the SEC sued the company on the grounds that it failed to consider clear, objective evidence of likely goodwill impairment in December 2016, thereby avoiding and delaying a significant amortization of goodwill in the EU in the fourth quarter 2016 and the first three quarters of 2017. “
This news sent the price of Sequential Brands shares back down.
Most recently, on April 16, 2021, the company reported terrible financial results for the fourth quarter and fiscal 2020, and announced that the company’s total revenue fell to $ 23 million in the fourth quarter, causing the company’s share price to plummet again.
“We’re focusing on investor losses and proving that Sequential Brands purposely boiled the books,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Sequential Brands investor and you are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with non-public information about Sequential Brands should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
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