SEC v. The Lovesac Company

The Lovesac Company, Donna Dellomo, and Yoon Um allegedly committed accounting violations in connection with expenses The Lovesac Company incurred shipping its furniture to customers. Dellomo and Um allegedly concealed $2.2 million shipping expenses. According to the complaint, Dellomo furthered the fraud by withholding information from Lovesac’s outside audit firm and then signing a document filed with the SEC she knew was false and misleading. Moreover, the complaint alleges that Lovesac and Dellomo failed to implement sufficient internal controls that may have prevented the fraudulent accounting.

Summary generated from official Securities and Exchange Commission press release