According to the law firm press release, Iconix is a brand management company and owner of a diversified portfolio of global consumer brands across women’s, men’s, entertainment and home. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) that the Company had underreported the cost basis of its brands; (2) that 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) that, as a result, the Company’s earnings and revenues were overstated; and (4) that, as a result of the foregoing, Defendants’ statements about Iconix’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On March 30, 2015 after the market closed, the Company announced that its Chief Financial Officer had resigned effective March 30, 2015. Following this news, shares of Iconix fell $2.72 per share, or 7%, to close on March 31, 2015, at $33.67 per share on unusually high volume.
On Friday, April 17, 2015, after the market closed, Iconix announced that the Company’s Chief Operating Officer had resigned after serving for approximately one year. The Company stated that it did not intend to name a new COO. Then, on Monday, April 20, 2015, Roth Capital Partners, published an Equity Research Note, criticizing the Company’s alleged accounting irregularities concerning free-cash flow accounting, organic growth, and gains on licensing fees. Following this news, shares of Iconix declined $6.62 per share, over 20%, to close on April 20, 2015, at $25.41 per share, on unusually heavy volume.
Plaintiffs filed a consolidated Complaint on May 13, 2016.
On October 25, 2017, the Court granted Defendants' Motion to Dismiss, with leave to amend. An amended Complaint was filed on November 14.
On September 16, 2019, the parties entered into a Stipulation of Settlement. The Court issued an Order granting preliminary approval of the Settlement on September 23. On January 23, 2020, the Court granted final approval of the Settlement and entered Final Judgment. On February 24, One of the class members filed a notice appealing the Court's final judgment approving the Settlement. On August 13, the Court of Appeals affirmed the Court's final judgment approving the parties' Settlement.