Federman & Sherwood Investigates Sequential Brands Group, Inc. for Possible Violations of Federal Securities Laws

Rhea-AI Summary

The law firm Federman & Sherwood is investigating Sequential Brands Group (NASDAQ: SQBG) for potential violations of federal securities laws. The inquiry centers on disclosures made by Sequential, particularly regarding possible breaches of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Previously, the SEC charged Sequential with misleading investors by not timely impairing goodwill, which led to inflated income and misrepresented financial statements. Following this news, SQBG's stock fell sharply on December 11, 2020.

Positive

• None.

Negative

• Investigation into SQBG could indicate serious compliance issues.
• Past SEC charges allege misleading financial reporting and inflated income.
• Stock price experienced a sharp decline related to previous SEC announcements.

The law firm of Federman & Sherwood has initiated an investigation into Sequential Brands Group, Inc. (NASDAQ: SQBG) with respect to possible violations of federal securities laws.

Sequential Brands Group, Inc. (“Sequential” or “SQBG”), together with its subsidiaries, owns various consumer brands in the active and lifestyle categories. Federman & Sherwood’s investigation focuses on disclosures made by SQBG and whether certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

On December 11, 2020, the U.S. Securities and Exchange Commission (“SEC”) issued a press release announcing that the “SEC Charges Sequential Brands Group Inc. with Deceiving Investors by Failing to Timely Impair Goodwill[.]” Specifically, the press release stated that “[a]s 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.” On this news, Sequential’s stock price fell sharply during intraday trading on December 11, 2020.

If you purchased SQBG securities, please visit our website at https://www.federmanlaw.com/blog/federman-sherwood-investigates-sequential-brands-group-inc-for-possible-violations-of-federal-securities-laws/ to join the potential securities action. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201217006135/en/

FAQ

What is the investigation by Federman & Sherwood about Sequential Brands Group (SQBG)?

Federman & Sherwood is investigating potential violations of federal securities laws related to disclosures made by SQBG.

What charges were previously brought against Sequential Brands Group by the SEC?

The SEC charged SQBG with deceiving investors by failing to timely impair goodwill, leading to inflated income and misrepresented financial statements.

How did the SEC's announcement affect SQBG's stock price?

Following the SEC's announcement on December 11, 2020, SQBG's stock price fell sharply.

What sections of the Securities Exchange Act are being investigated in relation to SQBG?

The investigation focuses on possible violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Why should investors be concerned about the SQBG investigation?

The investigation could indicate serious legal and compliance issues affecting SQBG's financial integrity and stock performance.