Movado Group(MOV) GlobeNewswire News Room·2025-04-25 16:44Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Movado Group, Inc. and its officers or directors [1] Group 1: Allegations and Misconduct - Movado disclosed allegations of misconduct in its Dubai branch related to sales practices in the Middle East, India, and Asia Pacific [3] - The investigation revealed that the former managing director and certain employees engaged in actions leading to an overstatement of sales, premature recognition of sales, and underreporting of credit notes over approximately five years [3] - The company has identified a material weakness in internal control over financial reporting, particularly in risk assessment and segregation of duties within the Dubai branch [3] Group 2: Financial Impact - Movado's historical consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, as well as interim periods in fiscal years 2025 and 2024, will require restatement [3] - The restated interim periods for fiscal 2025 will show a reduction in operating expenses due to the reversal of certain accruals linked to lower adjusted operating results [3] - Following the news of the investigation, Movado's stock price decreased by 13.56 per share on April 11, 2025 [3]