Sequential Brands Sinks Amid SEC Probe Over Goodwill Value (1)

Sequential Brands Group Inc., a collection of clothing lines, plummeted after the U.S. Securities and Exchange Commission charged the company with failing to properly assess goodwill amid a declining stock price.

“We allege that Sequential ignored clear evidence of goodwill impairment, and thereby delayed alerting investors to its declining economic prospects,” Melissa R. Hodgman, an associate director in the division of enforcement, said in a statement.

The company disputed the allegations.

“We are deeply disappointed with the SEC’s decision to bring a meritless action, and the company will defend itself vigorously,” Sequential said in an e-mailed statement. “The ...