DENVER--(BUSINESS WIRE)--The Shuman Law Firm announces that it is investigating potential claims against certain officers and directors of Iconix Brand Group, Inc. (“Iconix” or the “Company”) (Nasdaq: ICON). Iconix is a San Leandro, CA-based company that owns a portfolio of consumer brands across the womens, mens, entertainment and home industries.
The Firm’s investigation relates to whether certain current and/or former senior officers and directors breached their fiduciary duties to the Company. Specifically, on November 5, 2015, Iconix disclosed that it would restate its previously issued financial statements for: (i) the fourth quarter and annual results of 2013; (ii) the 2014 fiscal year and each quarterly period thereof; and (iii) the first and second quarters of 2015 to correct certain errors in accounting. These restatements include: (i) the classification of contractually obligated expenses, retail support and other costs as selling, general and administrative expenses, as opposed to netting such expenses against licensing or other revenue, as applicable; (ii) inadequate support for revenue recognition relating to certain license agreements; and (iii) inadequate estimation of accruals related to retail support for certain license agreements. On this news, shares of Iconix fell more than 57% during intraday trading.
Multiple class action lawsuits were filed against the Company in the U.S. District Court for Southern District of New York following these events. The class actions also allege that two senior officers, including Iconix’s former CEO, sold more than $40 million worth of Company stock prior to the above information being disclosed.
If you currently own Iconix common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 569-4531 or email Mr. Shuman at email@example.com or Mr. Glenn at firstname.lastname@example.org.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in stockholder litigation.