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San Francisco, California--(Newsfile Corp. - April 17, 2021) - Hagens Berman urges Sequential Brands Group, Inc. (NASDAQ: SQBG) investors with significant losses to submit your losses now.
Sequential Brands Group, Inc. (NASDAQ: SQBG) Securities Fraud Class Action:
The lawsuit alleges that Sequential Brands artificially inflated reported values of assets held on its balance sheet. Specifically, over the past several years, the company regularly assured investors that Sequential Brands' financial statements, including its accounting for goodwill and operating expenses, complied with GAAP.
In truth, according to the complaint, by late 2016 the company knew its goodwill was likely impaired, it delayed write-downs in late 2016 through 2017, and it understated operating expenses and net losses (thereby overstating operating income).
The truth began to emerge on Nov. 9, 2017, when Sequential Brands reported a charge of $36.5 million related to certain indefinite-lived intangible assets and listed its goodwill at $304 million. About three months later, on Feb. 28, 2018, Sequential Brands announced it charged off the $304 million goodwill. These events sent the price of Sequential Brands shares crashing lower.
Then, on Dec. 11, 2020, the SEC sued the company, alleging that in Dec. 2016, it "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."
This news sent the price of Sequential Brands shares crashing lower again.
Most recently, on Apr. 16, 2021, the company reported dreadful Q4 and FY 2020 financial results, disclosing that the company's Q4 total revenue fell to $23 million, sending the company's share price sharply lower again.
"We're focused on investors' losses and proving Sequential Brands intentionally cooked the books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Sequential Brands investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Sequential Brands should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SQBG@hbsslaw.com.
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