Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Sequential Brands Group, Inc. (NasdaqCM: SQBG).
On March 16, 2018, the Company filed its 10-K for the period ended December 31, 2017, disclosing a goodwill impairment charge of $304.1 million. On May 20, 2020, the Company revealed that it was “cooperating with an investigation by the [SEC] into the Company’s controls and practices surrounding the impairment analyses of goodwill and intangible assets in 2016 and 2017.” On August 14, 2020, the Company disclosed the July 17, 2020 receipt of a Wells Notice related to the SEC’s investigation recommending that the SEC file an enforcement action against the Company.
Then, on December 11, 2020, the SEC announced it had filed a complaint against the Company for failing to timely impair its goodwill pursuant to generally accepted accounting principles and, according to the 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.”
KSF’s investigation is focusing on whether Sequential’s officers and/or directors breached their fiduciary duties to Sequential’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Microchip shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (email@example.com), or fill out the form on this page.