Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Iconix Brand Group, Inc.
June 24, 2015
Bernstein Liebhard LLP announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of shareholders who purchased shares of Iconix Brand Group, Inc. (“Iconix” or the “Company”) (NASDAQ: ICON) between February 20, 2015 and April 17, 2015 (the “Class Period”).
Iconix is a brand management company that owns a diversified portfolio of 35 global consumer brands across women’s, men’s, entertainment, and home. The Company’s business strategy is to maximize the value of its brands primarily through licenses and joint venture partnerships around the world, as well as to grow its brand portfolio through strategic acquisitions.
The complaint charges Iconix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) the Company had underreported the cost basis of its brands; (b) the Company engaged in irregular accounting practices relating to the booking of its joint venture revenues and profits, free-cash flow, and organic growth; (c) as a result, the Company’s earnings and revenues were overstated; and (d) defendant’s statements about the Company’s business, operations, and prospects were therefore false and misleading and/or lacked a reasonable basis.
On the evening of March 30, 2015, Iconix announced the resignation of Jeff Lupinacci, its Chief Financial Officer. On this news, the Company’s shares fell $2.72 per share, or 7%, to close at $33.67 per share on March 31, 2015.
Then, on April 17, 2015, Iconix announced the resignation of Seth Horowitz, its Chief Operating Officer, who had served in the position for approximately one year. Three days later, Roth Capital Partners published an Equity Research Note, stating that there were “uncertainties surrounding [Iconix’s] prior reporting of free cash flow and practice of booking joint venture gains as revenue.” In reaction to this news, Iconix’s stock price dropped $6.62 per share, over 20%, to close at $25.41 on April 20, 2015, on unusually heavy volume.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Iconix securities during the Class Period. If you invested in Iconix securities as described above, and lost over $100,000 (whether realized losses or unrealized losses on stock you still hold) on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 24, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Iconix shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.