An investigation on behalf of investors of Guess?, Inc. (NYSE:GES) shares over potential securities laws violations by Guess?, Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Guess?, Inc. (NYSE:GES) concerning whether a series of statements by Guess?, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

On February 1, 2018, Guess?, Inc. disclosed that in 2017 a website had approached the Company seeking to post separate allegations that Paul Marciano, the Companys Executive Chairman and Chief Creative Officer, had acted inappropriately toward two women. Guess? stated that its investigation into the allegations has not corroborated either allegation, and the Board of Directors has been unable to determine that either accusation has merit.

On February 7, 2018, the Board of Directors formed a Special Committee comprised of two independent directors to oversee an ongoing investigation into recent allegations of improper conduct by Paul Marciano. Mr. Marciano adamantly denies the allegations.

On February 9, 2018, Guess?, Inc. issued a statement saying that it takes seriously any allegation of sexual harassment and that the Company does not condone such misconduct in any form. Guess?, Inc said that the company is committed to completing an extensive and impartial investigation into all of the facts.

Shares of Guess?, Inc. (NYSE:GES) declined on February 5, 2018 to as low as $14.17 per share.