SEC Drops Accounting Fraud Case Against Ex-Iconix CEO

The Securities and Exchange Commission will drop a long-running lawsuit against the founder of apparel licenser Iconix Brand Group that accused him of inflating the company’s revenue and earnings more than a decade ago.

The SEC told a federal judge in Manhattan that it voluntarily dismisses the case against Neil Cole, Iconix’s former chief executive, according to a filing on Monday. Cole in October was cleared by a federal appeals court of criminal charges in a parallel fraud case.

The SEC said its decision was an exercise of its discretion and “doesn’t necessarily reflect the Commission’s position on any ...