NEW YORK, May 14, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston reminds investors that a class action lawsuit has been filed against Sequential Brands Group, Inc. (“Sequential Brands”) (NASDAQ: SQBG) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of Sequential Brands between November 3, 2016 and December 11, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) in late 2016, the Company knew or should have known that its goodwill was likely impaired; (ii) the Company avoided and delayed the material write down to goodwill in late 2016 through 2017; (iii) the Company understated its operating expenses and net loss and also materially overstated its income from operations, goodwill, and assets from late 2016 through 2017; (iv) the Company’s internal controls were deficient; (v) the Company has failed to restate, correct, or disclose relevant improprieties, deceptive conduct, misstatements, omissions, and control violations; (vi) as a result of the foregoing, the Company was at greater risk of regulatory scrutiny and enforcement; and (vii) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Investors who purchased or otherwise acquired shares of Sequential Brands during the Class Period should contact the Firm prior to the May 17, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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