Insights & Regulatory Updates

SEC Charges The Lovesac Company and Former Executives with Accounting Violations Over Concealed Shipping Expenses
Anderson Insights K. Braeden Anderson Anderson Insights K. Braeden Anderson

SEC Charges The Lovesac Company and Former Executives with Accounting Violations Over Concealed Shipping Expenses

The Securities and Exchange Commission (SEC) recently announced charges against The Lovesac Company, a publicly traded furniture retailer based in Connecticut, as well as two of its former executives, Donna Dellomo, CPA (the company’s former CFO), and Yoon Um, CPA (the former controller), for alleged accounting violations. These charges stem from unreported shipping expenses that allegedly skewed the company's financial records and metrics. Lovesac has agreed to settle the claims, including a civil penalty payment of $1.5 million.

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