NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Sequential Brands Group, Inc. (NASDAQ: SQBG) securities between November 3, 2016 and December 11, 2020, inclusive (the “Class Period”). Investors have until May 17, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On February 28, 2018, Sequential Brands Group issued a press released entitled “Sequential Brands Group Announces Fourth Quarter and Full Year 2017 Financial Results” which belatedly announced the goodwill adjustment.
On this news, Sequential Brands Group’s stock price fell $6.80 per share, or 8%, to close at $76.00 per share on February 28, 2018.
Then on December 11, 2020, the SEC filed a Complaint alleging that the Company failed “to take into consideration clear, objective evidence of likely goodwill impairment, which avoided and delayed a material write down to goodwill in the fourth quarter of 2016 and the first three quarters of 2017 (the ‘Relevant Period’).”
On this news, Sequential Brands Group’s stock price fell $2.03 per share, or 11%, to close at $16.20 per share on December 11, 2020.
The complaint, filed on March 16, 2021, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose 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; and (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. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased Sequential Brands Group securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.