Sequential Brands Must Face SEC Goodwill Impairment Allegations

Sequential Brands Group Inc. lost its bid to throw out SEC fraud allegations after a federal judge in New York ruled the agency properly alleged the company made misleading statements about a goodwill impairment.

The Securities and Exchange Commission accuses the consumer brands company—whose portfolio includes the Jessica Simpson Collection and yoga brand Gaiam—of overstating its goodwill, leading to a $304 million impairment. The agency properly alleged that Sequential ran afoul of federal securities laws, so the complaint may move forward, the U.S. District Court for the Southern District of New York said.

Sequential argued that the SEC didn’t ...