SEQUENTIAL BRANDS GROUP INC REVIEW
This complaint was posted on NAS on 6th Jan, 2021 and is a permanent record located here: https://www.nameandshame.com/sequential-brands-group-inc-5YCWI/selfish-company-lie-to-their-investors-id5ydqc .
Selfish Company Lie To Their Investors
Today, The Smart Investor Feed brings you another morally reprehensible fraud.
Sequential Brands Group Inc has been seized/arrested by the U.S. Securities And Exchange Commission (SEC). Shocking right?
We weren’t expecting this as well, but these scammers are getting smarter by the minute, making it harder for us to identify.
Such swindlers seem to be booming in numbers lately. This case is kind of interesting, why don’t I show you why:
Full Report On Sequential Brands Group Inc
Washington D.C., December 11, 2020 - The Securities and Exchange Commission today charged New York-based brand-management company Sequential Brands Group, Inc. with failing to impair its goodwill as required by accounting principles and the federal securities laws.
The SEC's complaint alleges that Sequential failed to properly assess its goodwill for potential impairment after several months of declining stock prices followed by a precipitous drop in early November 2016. According to the complaint, in December 2016, shortly after Sequential passed its annual goodwill testing, the company conducted internal calculations showing that, in light of the declining stock price, Sequential would fail the first step of its disclosed two-step impairment test. The complaint alleges that the company ignored this objective evidence of impairment. Instead, the complaint alleges, Sequential performed a qualitative analysis that omitted any mention of its internal calculations, as well as numerous other negative developments in the company's business, leading it to unreasonably conclude that goodwill was not impaired. As 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. Sequential allegedly continued to improperly account for goodwill in the next three quarters, before belatedly impairing all of its goodwill-totaling $304 million-in the fourth quarter of 2017.
The complaint, filed in federal district court in Manhattan, charges Sequential with violating the antifraud provisions of Section 17(a)(3) of the Securities Act of 1933, and, additionally, charges Sequential with violations of the reporting, books and records, and internal controls provisions of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder. The SEC is seeking a final judgment ordering injunctive relief and civil monetary penalties.
Conclusion: Sequential Brands Group Inc Is A Fraud
The report on SEC clearly suggests that Sequential Brands Group Inc never had any intentions to do honest business or provide helpful services. Main intention behind all their actions was to take advantage of the honesty & gullibility of people and scam them. It would be an understatement to call this a mere fraud, this one is a scandal.
If you feel like you are a victim of this scam, then I recommend contacting a law firm and consulting with them about a lawsuit. Companies & firms pay huge reprimands to settle serious lawsuits.
Help Us Fight These Criminals
Do you have evidence against Sequential Brands Group Inc or one of their associates, then please post it here. These criminals rely on their witnesses’ & victims’ silence, if you speak up, then they get exposed and punished for their horrific acts. I started The Smart Investor Feed on this site with only one purpose; to become a nightmare for the financial frauds in the country. I try to post often, so you can bookmark my profile for regular updates on frauds & con-artists.
Full Disclosure: We sourced this piece of information from the SEC database