A struggling fashion house charged with accounting fraud says the victims are its own executives, many of whom were involved in the alleged illegal activity.
The unusual defense came from Sequential Brands in a motion last week to dismiss a case filed by the U.S. Securities and Exchange Commission. Sequential, whose stock price has fallen by 75% in recent months, used to own the Martha Stewart label and might sell the Jessica Simpson fashion line back to the singer.
The government contends that soon after buying Martha Stewart Living Omnimedia in 2015 Sequential executives understood falling sales would force them to take a write-down of at least $100 million.
→ Continue reading at Crain's New York Business