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id: 915, Created by Stan Vick, Scout
The Lovesac Company (LOVE) Year 2023 Restatement Case
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30 Mar 2023Class period Start
16 Aug 2023Class period End
- In August, Lovesac disclosed errors in accounting and restatement of 2023 financials.
- On it, $LOVE fell 2.95%, losing $10M+ of shareholder value.
- The first affected investor already filed the initial claim vs. Lovesac in the district court of Connecticut.
On August 16, 2023, Lovesac (LOVE) disclosed in an SEC filing that in June 2023, the Audit Committee of its BoD commenced an internal investigation related to the recording of last-mile shipping expenses.
- Lovesac identified certain errors with the methodology to calculate the accrual of its last-mile freight expenses applicable to the Company’s financial statements.
- Lovesac stated that “as a result of the identified errors related to last mile freight expenses, the Company believes that previously reported operating income and net income were overstated".
- The Company concluded that its 2023 financial statements should no longer be relied upon. Accordingly, Lovesac said it would restate the flawed financial statements in question.
Following these disclosures, $LOVE fell 2.95% and lost over $10 million of its market capitalization, damaging investors.
Considering all the disclosures, Investors have reasons to suspect Lovesac and Accountables of failing to disclose setbacks in accounting. One of the first shareholders has already filed the initial claim in the district court of Connecticut.
Failure to Disclose,
Shock Event Date
17 August 2023
19 December 2023
Lead Plaintiff Deadline
19 February 2024
Hon. Kari A. Dooley