Hip hop icon and fashion mogul Jay Z may have a less-than-friendly date with the U.S. Securities and Exchange Commission sometime soon, Bloomberg reported.
What Happened
Jay-Z may landed in hot water with the SEC after he failed to testify as part of an ongoing investigation into alleged financial reporting violations at Iconix Brand Group Inc ICON. The SEC is examining potential violations of federal securities laws related to Iconix's acquisition of intangible assets associated with Jay-Z's Rocawear apparel brand, according to the SEC's statement about the subpoena.
A representative for Jay-Z told Bloomberg the artist is aware the SEC is looking into Iconix's financials.
"Mr. [Shawn] Carter had no role in that reporting or Iconix's other actions as a public company. Mr. Carter is a private citizen who should not be involved in this matter," the statement said.
Why It's Important
Iconix announced a $169-million write down for Rocawear in early 2016 and another writedown of $34 million this year. The SEC is now filing a subpoena enforcement action against Jay-Z for testimony to inquire about his joint venture with Iconix.
The SEC initially issued a subpoena on Nov. 16, 2017, with a second subpoena issued Feb. 23, 2018 after he failed to appear. "The application does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation," the agency said in the statement.
What's Next
Iconix Brand shares were trading lower by 7.73 percent at the time of publication Thursday afternoon.
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Photo by Mike Barry/Wikimedia.
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