Movado Group, Inc. Investors: Company Investigated by the Portnoy Law Firm

Investors can contact the law firm at no cost to learn more about recovering their losses

/EIN News/ -- ​
LOS ANGELES, April 22, 2025 (GLOBE NEWSWIRE) --  The Portnoy Law Firm advises Movado Group, Inc. (“Movado” or “the Company”) (NYSE: MOV) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Movado investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: info@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

On April 11, 2025, Movado disclosed in a filing with the U.S. Securities and Exchange Commission that, in late January 2025, it became aware of allegations of misconduct within the Dubai branch of its Swiss subsidiary, MGI Luxury Group Sárl. The allegations involved sales practices affecting customers in the Middle East, India, and Asia Pacific (the “Affected Region”). Following an internal investigation, the Company found that the former managing director of the Dubai branch—along with certain subordinates—engaged in conduct that led to overstated and prematurely recognized sales, as well as underreported credit notes (e.g., customer discounts).

This misconduct included the unauthorized use of a third-party warehouse to prematurely recognize sales and the falsification of documents to bypass internal controls. The activity reportedly took place over approximately five years, beginning with the fiscal year ended January 31, 2021. The Company has since terminated the former managing director.

As a result, Movado announced that it would restate its consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, as well as for the interim periods within fiscal years 2025 and 2024, to accurately reflect the timing and value of sales and credits. The restated 2025 interim periods also include a reduction in operating expenses due to the reversal of certain accruals linked to the revised results.

Additionally, management identified a material weakness in the Company’s internal control over financial reporting. Specifically, the risk assessment process failed to adequately address the lack of segregation of duties within the Dubai branch.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bars
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

Attorney Advertising