Shares Of Iconix Brand Crashing, Company Cooperating With SEC Over Accounting Treatment

Shares of Iconix Brand Group Inc ICON lost more than one-quarter of its value Monday morning after the company confirmed in a press release it is cooperating with the SEC following a formal order of investigation. According to Iconix, the investigation is related to the accounting treatment for the formation of certain joint ventures. Iconix noted in its press release that it disclosed in a prior Form 8-K on November 5 that it will restate historical financial statements for various periods to "correct certain errors in accounting." The company also added that it has already completed the financial restatements, which were filed at the end of November 2015. Shares traded recently at $5.49, down 26 percent.