An investigation on behalf of investors of Sequential Brands Group, Inc. (NASDAQ: SQBG) shares over potential securities laws violations by Sequential Brands Group, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Sequential Brands Group, Inc. (NASDAQ: SQBG) concerning whether a series of statements by Sequential Brands Group, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
New York based Sequential Brands Group, Inc., together with its subsidiaries, owns various consumer brands in the active and lifestyle categories. Sequential Brands Group, Inc. reported that its annual Total Revenue declined from $169.95 million in 2018 to $101.57 million in 2019, and that its EBIT decreased from $82.18 million in 2018 to $39.9 million in 2019.
On December 11, 2020, the U.S. Securities and Exchange Commission ('SEC') issued a press release entitled 'SEC Charges Sequential Brands Group Inc. with Deceiving Investors by Failing to Timely Impair Goodwill.' According to the SEC's press release, '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.'
Shares of Sequential Brands Group, Inc. (NASDAQ: SQBG) closed on December 11, 2020, at $16.20 per share.