Revlon, Inc. (REV) Accused of Misleading Investors

According to the complaint for alleged violations of the Securities Exchange Act of 1934 between March 12, 2015 and March 28, 2019, Revlon, Inc. (REV) filed quarterly and annual reports attesting to the accuracy of its financial reporting, the effectiveness of its internal controls, and the disclosure of all fraud. In particular, it noted the risks regarding Revlon's enterprise resource planning ("ERP") system. However, Revlon failed to create measures to monitor the ERP system appropriately once implemented. In March 2019, Revlon disclosed that it would be unable to timely file its annual report for 2018 due to the identification of a material weakness in its internal controls relating to its ERP system. On this news, Revlon shares fell nearly 7% to close at $18.02 per share on March 19, 2019. On March 28, 2019, Revlon filed its annual report and revealed further details about its problem with the ERP system, internal control weakness and the reason for these weaknesses. On this news, Revlon shares fell over 6% to close at $19.38 per share on March 29, 2019.