Former Lovesac Officers Must Face SEC Claims Over Buried Costs

Two former executives at furniture company Lovesac Co. are still on the hook for alleged fraud after a federal judge largely declined bids to toss SEC claims that they concealed $2.2 million of shipping expenses in public disclosures.

Ex-CFO Donna Dellomo and former controller Yoon Um must face claims that they hid the costs from a report for the first quarter of 2024 by spreading them across the remaining three quarters, Judge Victor Bolden of the US District Court for the District of Connecticut ruled.

The couch and beanbag chair retailer, which already paid $1.5 million to settle the Securities ...