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MOVADO ALERT: Bragar Eagel & Squire, P.C. is Investigating Movado Group, Inc. on Behalf of Movado Stockholders and Encourages Investors to Contact the Firm

1. Movado is under investigation for potential securities law violations. 2. Allegations of misconduct involved overstatements and premature sales recognition. 3. The company will restate financials for multiple fiscal years. 4. Management identified major weaknesses in internal control processes. 5. Stock price fell 1.81% following the news release.

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FAQ

Why Bearish?

The investigation and need for restatement indicate serious financial discrepancies, akin to past scandals (e.g., Enron, Volkswagen), leading to investor distrust and short-term declines in stock prices. Historical instances show that restatements negatively affect shares due to investor concern over transparency and credibility.

How important is it?

The article highlights significant legal and financial issues that could erode investor confidence in MOV. The investigation details may lead to broader concerns about the company’s governance and operational integrity.

Why Short Term?

Short-term ramifications are expected as investor sentiment reacts to the news; however, if Movado resolves these issues and improves controls, there may be a gradual recovery. Companies typically face immediate negative impacts during such investigations but can stabilize over time with transparency.

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NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Movado Group, Inc. (“Movado” or the “Company”) (NYSE:MOV) on behalf of Movado stockholders. Our investigation concerns whether Movado has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On April 11, 2025, in a filing with the United States Securities and Exchange Commission, Movado revealed that in late January 2025, the Company became aware of allegations of misconduct within the Dubai branch (the "Dubai Branch") of the Company's Swiss subsidiary, MGI Luxury Group Sárl, related to sales to certain customers in the Middle East, India & Asia Pacific region (the "Affected Region"). Based on a subsequent investigation, the Company determined that "the former managing director of the Dubai Branch, who oversaw the Affected Region, as well as certain employees under his direction, took actions that resulted in an overstatement of sales, premature recognition of sales, and underreporting of credit notes (e.g., sales discounts) owed to customers in the Affected Region. These actions included the use of a third-party warehouse unknown to the Company's management to facilitate the premature recognition of sales, and the falsification of documents to circumvent internal controls. The conduct occurred over a period of approximately five years (beginning with the Company's fiscal year ended January 31, 2021). The Company has terminated the now former managing director of the Dubai Branch." Further, the Company revealed that "its historical consolidated financial statements for the fiscal years ended January 31, 2024, 2023 and 2022, and the interim periods within fiscal years 2025 and 2024 (the "Affected Periods"), require restatement to properly record the extent and timing of sales earned and credits issued during the relevant time period. Additionally, the restated interim periods of fiscal 2025 reflect a reduction in operating expenses as a result of the reversal of certain accruals due to the lower adjusted operating results." Finally, Movado stated that "management identified a material weakness in internal control over financial reporting, wherein the Company's risk assessment process did not properly assess the risks associated with the lack of functional segregation of duties in the Company's Dubai Branch." On this news, Movado's stock price fell $0.25 per share, or 1.81%, to close at $13.56 per share on April 11, 2025. If you purchased or otherwise acquired Movado shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form.  There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes. Follow us for updates on LinkedIn, X, and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn and X. Contact Information: Bragar Eagel & Squire, P.C.Brandon Walker, Esq.Marion Passmore, Esq.(212) 355-4648investigations@bespc.comwww.bespc.com

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