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Sequential brands group3/14/2023 The litigation will be led by Sarah Heaton Concannon. The SEC's investigation, which continues, was conducted by Ellen F. The SEC is seeking a final judgment ordering injunctive relief and civil monetary penalties. The complaint, filed in federal district court in Manhattan, charges Sequential with violating the antifraud provisions of Section 17(a)(3) of the Securities Act of 1933, and, additionally, charges Sequential with violations of the reporting, books and records, and internal controls provisions of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder. Compare Todays Range N/A 50-Day Range 1.50 12.18 52-Week Range N/A Volume N/A Average Volume 1.06 million shs Market Capitalization 2,000. Sequential allegedly continued to improperly account for goodwill in the next three quarters, before belatedly impairing all of its goodwill-totaling $304 million-in the fourth quarter of 2017. Sequential Brands Group - SQBG News Today Notice: This company has been marked as potentially delisted and may not be actively trading. As alleged, by avoiding an impairment to its goodwill in 2016, Sequential inflated its income from operations, created a false impression of its financial condition, and misstated its financial statements and reports for almost a year. with failing to impair its goodwill as required by. Instead, the complaint alleges, Sequential performed a qualitative analysis that omitted any mention of its internal calculations, as well as numerous other negative developments in the company's business, leading it to unreasonably conclude that goodwill was not impaired. The SEC stated that: It charged New York-based brand-management company Sequential Brands Group, Inc. The complaint alleges that the company ignored this objective evidence of impairment. According to the complaint, in December 2016, shortly after Sequential passed its annual goodwill testing, the company conducted internal calculations showing that, in light of the declining stock price, Sequential would fail the first step of its disclosed two-step impairment test. The SEC's complaint alleges that Sequential failed to properly assess its goodwill for potential impairment after several months of declining stock prices followed by a precipitous drop in early November 2016. with failing to impair its goodwill as required by accounting principles and the federal securities laws. Since these lawsuits and investigations could raise investors' concerns about the stock's near-term prospects, its share price could tank further.Washington D.C., DecemThe Securities and Exchange Commission today charged New York-based brand-management company Sequential Brands Group, Inc. Morning Agenda: Winners and Losers in Health Care Mergers Martha Stewarts Media Empire Sold for Fraction of Its Former. Moreover, Scott+Scott Attorneys at Law LLP has commenced an investigation of SQBG concerning potential fiduciary duty breaches by certain directors and officers of the company. have also filed a class action lawsuit against the company on behalf of its investors. Bronstein, Gewirtz & Grossman, LLC and Bragar Eagel & Squire, P.C. In May, the Schall Law Firm and Gainey McKenna & Egleston filed a class action lawsuit against SQBG on behalf of its shareholders for violations of federal securities law. It plans to use the proceeds to repay creditors, such as KKR & Co., and avoid a cash crunch. In fact, SQBC plans to sell off its majority stake in the Jessica Simpson fashion brand back to the singer as a part of a potential Chapter 11 bankruptcy filing. Sequential Brands Group is to own, manage and license a large-scale and diversified portfolio of consumer brands across multiple industries. The company plans to use the net proceeds from the sale to pay down its debt. In April, SQBG closed the sale of its Heelys brand for $11 million in cash to BBC International.
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