SQBG.US
id: 1379
Sequential Brands (SQBG) $9.75M Investor Settlement
Late claims are being considered for compensation, subject to approval.
S.D. New York
Court1:21-cv-07296
Case number11/09/2016
Class period Start12/11/2020
Class period End03/11/2025
Claim deadlineSequential Brands ($SQBG) has agreed to settle $9.75 million with investors to resolve claims that it overstated brand values and failed to disclose major goodwill impairments, increasing regulatory risk.
Overview
Sequential Brands was accused of overstating brand values and failing to disclose over $100 million in goodwill impairments, between 2016 and 2019. On December 11, 2020, the SEC filed a complaint exposing the hidden losses, causing $SQBG to drop 11%, and, soon, Sequential Brands faced a lawsuit from investors.
Timeline
- November 9, 2016 – Sequential began issuing financial reports, allegedly overstating brand values and hiding goodwill impairments.
- 2017–2019 – Sequential continued reporting inflated brand values, misleading investors about its financial health.
- December 11, 2020 – The SEC filed a complaint against Sequential, revealing hidden losses, $SQBG dropped 11%.
- March 16, 2021 – Investors filed a lawsuit, alleging Sequential misled them by overstating brand values and failing to disclose impairments.
- January 2025 – Sequential agreed to settle for $9.75 million to resolve investor claims.
Background
Between 2016 and 2019, Sequential Brands positioned itself as a financially stable company, emphasizing the strength of its brand portfolio. During this period, the company overstated brand values and failed to write down at least $100 million in impaired goodwill. Instead of disclosing these losses, it continued to report inflated values in its financial filings, misleading investors about its true financial condition.
On December 11, 2020, the SEC filed a complaint exposing these practices. Following the announcement, $SQBG fell by 11%.
By 2020, investors filed a lawsuit, arguing that Sequential misrepresented its financial condition and regulatory risks.
What Can Investors Expect Now?
Sequential Brands ($SQBG) has agreed to settle $9.75 million with investors to resolve claims that it overstated brand values and failed to disclose major goodwill impairments, increasing regulatory risk.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
03/16/2021
Plaintiffs
Peter D’Arcy
Defendants
Yehuda Shmidman; Karen Murray; Gary Klein; Andrew Cooper
Judge
J. Paul Oetken
Administrator
Angeion
Settlement agreement date
2024-10-30
Court hearing date
02/25/2025
Exclusion deadline
02/04/2025
Objection deadline
02/04/2025
Attorney fee
$2,476,526
Trades matching type
FIFO
+$9,750,000
Cash Settlement AmountFrequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?