NEW YORK, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Lovesac Company ("Lovesac" or the "Company") (NASDAQ:LOVE) on behalf of Lovesac stockholders. Our investigation concerns whether Lovesac has violated the federal securities laws and/or engaged in other unlawful business practices.
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On August 15, 2023, Lovesac issued a press release announcing non-reliance on previously issued financial statements or a related audit report. The Company stated, "In June 2023, the Audit Committee (the "Audit Committee") of the Board of Directors of The Lovesac Company (the "Company") commenced an internal investigation related to the recording of last mile shipping expenses, resulting from the discovery of a recorded journal entry in the quarter ended April 30, 2023 to capitalize $2.2 million of shipping expenses that related to the fiscal year ended January 29, 2023. In addition to the aforementioned journal entry, the Company has identified through the investigation certain errors with the methodology used by the Company to calculate the accrual of its last mile freight expenses applicable to the Company's financial statements for the fiscal year ended January 29, 2023 and the ...