Pomerantz Law Firm Investigates Potential Fraud at Movado Group, Inc.

Movado Group, Inc. Under Investigation by Pomerantz Law Firm

Pomerantz LLP has announced it is investigating possible claims on behalf of investors of Movado Group, Inc. (NYSE: MOV). The investigation primarily focuses on whether the company and some of its executives have engaged in fraudulent practices or other inappropriate corporate conduct.

Allegations of Misconduct

On April 11, 2025, Movado disclosed in a filing with the United States Securities and Exchange Commission that it became aware of allegations regarding misconduct within its Dubai branch. This branch is part of MGI Luxury Group, the Swiss subsidiary of Movado. Concerns were raised about certain sales practices involving customers located in the Middle East, India, and the Asia Pacific region, collectively referred to as the 'Affected Region.'

Following an internal inquiry, Movado found that the former managing director of the Dubai branch and some of his team members engaged in behaviors that resulted in inflating sales numbers, recognizing sales prematurely, and underreporting credit notes owed to customers. It was revealed that this activity included utilizing an unauthorized third-party warehouse for recording sales and falsifying documents to bypass internal controls.

These improprieties reportedly spanned a considerable period, starting from the company's fiscal year ending January 31, 2021. Consequently, Movado announced that it would need to restate its historical consolidated financial statements for fiscal years ending January 31 for 2024, 2023, and 2022, as well as interim financial periods during 2024 and 2025. The restated figures will accurately reflect the timing and extent of sales and the credits issued during this interval.

Impact on Share Price

As a direct result of these revelations, Movado's stock price dropped by $0.25, or 1.81%, closing at $13.56 per share on the day of the announcement. This unfortunate dip highlights the immediate financial ramifications of the internal crisis the company is currently facing.

Pomerantz Firm's Reputation

Pomerantz LLP is well-regarded in the realms of corporate, securities, and antitrust class action litigation and has a rich history of advocating for investors. Founded by the late Abraham L. Pomerantz, they are noted for setting the standards in securities class actions. Over more than 85 years, the firm has successfully recovered substantial damages on behalf of class members who have been victims of fraud or corporate malfeasance.

Call to Action

Investors seeking more information regarding the investigation or those wishing to join the potential class action can reach out to Danielle Peyton at Pomerantz LLP via email at [email protected] or call 646-581-9980, ext. 7980.

The outcomes of these proceedings could be significant, and affected investors should remain vigilant and updated on developments.

For additional details, visit Pomerantz Law Firm's official website.