Movado Group, Inc. Investors: Company Investigated by the Portnoy Law Firm

Core Viewpoint - Movado Group, Inc. is under investigation for possible securities fraud related to misconduct in its Dubai branch, which may lead to a class action lawsuit for affected investors [1][3]. Group 1: Allegations and Misconduct - In late January 2025, Movado became aware of allegations of misconduct within its Dubai branch, which involved improper sales practices affecting customers in the Middle East, India, and Asia Pacific [3]. - The former managing director and certain subordinates engaged in actions that resulted in overstated and prematurely recognized sales, as well as underreported customer discounts [3][4]. - Misconduct included unauthorized use of a third-party warehouse for premature sales recognition and falsification of documents to bypass internal controls, occurring over approximately five years starting from the fiscal year ended January 31, 2021 [4]. Group 2: Financial Restatement and Internal Controls - Movado announced it would restate its consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, along with interim periods for fiscal years 2025 and 2024, to accurately reflect sales and credits [5]. - The restated financials for 2025 interim periods will also show a reduction in operating expenses due to the reversal of certain accruals linked to the revised results [5]. - A material weakness in the Company's internal control over financial reporting was identified, particularly in the risk assessment process that failed to address the lack of segregation of duties within the Dubai branch [6].