Iconix Brand Group, Inc.
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 14, 2016, the Honorable Paul G. Gardephe issued an order appointing the City of Atlanta Police Officers’ Pension Fund and the City of Atlanta Firefighters’ Pension Fund as Lead Plaintiffs and appointing Saxena White as Co-Lead Counsel.
Lead Plaintiffs filed the Consolidated Amended Complaint on May 13, 2016. On July 27, 2016, Defendants filed their motion to dismiss the Amended Complaint, along with documentation in support thereof. Lead Plaintiffs’ opposition to Defendants’ motion to dismiss was filed on September 27, 2016. Defendants filed their reply brief in further support of their motion to dismiss on October 27, 2016.
On November 14, 2017, Lead Plaintiffs filed a Second Amended Complaint adding as a defendant BDO USA, LLP, Iconix’s auditor during the Class Period. The Second Amended Complaint alleges that BDO intentionally ignored numerous red flags establishing that its 2014 audit violated Generally Accepted Auditing Practices (GAAS). Defendants shall file their motion to dismiss the Second Amended Complaint by February 2, 2018. Plaintiffs shall file their opposition to any motion to dismiss by March 30, 2018. And Defendants, including BDO shall file replies by April 27, 2018.