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Investigation
03/16/2021
Initial Lawsuit
03/16/2021
Lawsuit Progression
06/11/2021
This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Sequential Brands Group securities between November 3, 2016 and December 11, 2020, inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(1) in late 2016, the Company knew or should have known that its goodwill was likely impaired;
(2) the Company avoided and delayed the material write down to goodwill
in late 2016 through 2017;
(3) the Company understated its operating expenses and
net loss and also materially overstated its income from operations, goodwill, and assets from late 2016 through 2017;
(4) the Company’s internal controls were deficient;
(5) the Company has failed to restate, correct, or disclose relevant improprieties, deceptive conduct, misstatements, omissions, and control violations;
(6) as a result of the foregoing, the Company was at greater risk of regulatory scrutiny and enforcement;
(7) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
