Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Iconix Brand Group, Inc.
Oklahoma City, OK (June 25, 2015) – On June 23, 2015, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Iconix Brand Group, Inc. (NASDAQ: ICON). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 20, 2013 through April 17, 2015. More specifically, this litigation was filed because the Company failed to disclose: (1) the Company had underreported the cost basis of its brands; (2) the Company engaged in irregular accounting practices related to the booking of its joint venture revenues and profits, free-cash flow, and organic growth; (3) as a result, the Company’s earnings and revenues were overstated; and (4) accordingly, the Company’s statements about business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. After close of the market on March 30, 2015, the Company announced that its CFO Jeff Lupinacci had resigned effective March 30, 2015. On this news, the Company’s shares of declined $2.72 per share to close on March 31, 2015, at $33.67 per share on unusually high volume.
On April 17, 2015, the Company announced that COO Seth Horowitz had resigned after serving for approximately one year. The Company stated that it did not intend to name a new COO. Three days later, Roth Capital Partners published an Equity Research Note entitled, "ICON: COO Departure Creates Greater Uncertainty; Lowering Target to $36" stating that there were “uncertainties surrounding prior reporting of free cash flow and practice of booking joint venture gains as revenue.” Following this news, the Company’s shares declined $6.62 per share, over 20%, to close at $25.41 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of all Iconix Brand Group, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, August 24, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Thu, June 25, 2015
by Robin Hester filed under