Defendant Name: The Lovesac Company

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 54738L10

Initial Case Details

Legal Case Name SEC v. Donna Dellomo, Yoon Um, and The Lovesac Company
First Document Date 29-Oct-2024
Initial Filing Format Civil Proceeding
Case Number 24-cv-01727
Allegation Type Issuer Reporting and Disclosure
Federal District Court Connecticut, District of Connecticut

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Rule 13a-20
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(3)
Additionally, Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Rule 12b-20 of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Rule 12b-20 of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Sec 13(a) of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Sec 13(a) of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-1 of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-1 of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-11 of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-11 of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-13 of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Rule 13a-13 of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Sec 13(b)(2)(A) of the Exchange Act.
Yoon Um is alleged to have aided and abetted The Lovesac Company's violation of Sec 13(b)(2)(A) of the Exchange Act.
Donna Dellomo is alleged to have aided and abetted The Lovesac Company's violation of Sec 13(b)(2)(B) of the Exchange Act.

Resolutions

First Resolution Date 29-Oct-2024
Headline Total Penalty and Disgorgement $1,500,000

Related Documents:

comp26166 29-Oct-2024 Complaint
Complaint
The Commission stated: "This case involves fraudulent accounting treatment of approximately $2.2 million in shipping expenses that led to materially misleading financial statements being filed with the Commission and made available to the investing public."
LR-26166 29-Oct-2024 Litigation Release
SEC Charges Furniture Company and Two Former Executives with Accounting Violations
On October 29, 2024, the SEC stated "that it filed charges against Connecticut-based publicly traded furniture retailer The Lovesac Company, Donna Dellomo, CPA, Lovesac’s former CFO, and YoonUm, CPA, Lovesac’s former controller, for accounting violations in connection with expenses Lovesac incurred shipping its furniture to customers. Lovesac has agreed to a settlement to resolve the claims against it by, among other things, paying a civil penalty of $1.5 million."

Other Defendants in Action:

Donna Dellomo
Yoon Um