The Lovesac Company agreed to pay $1.5 million to settle charges from the U.S. Securities and Exchange Commission (SEC) regarding alleged accounting violations on October 29, 2024.
The SEC's complaint, filed in the U.S. District Court for the District of Connecticut, detailed that shipping invoices from fiscal year 2023, totaling approximately $2.2 million, were not recorded until the first quarter of fiscal year 2024.
This omission allegedly resulted in inflated financial metrics for the prior fiscal year and highlighted a lack of adequate internal controls at Lovesac, contributing to the concealment of these expenses.
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