Guess? shares dive again as it confirms investigation into Paul Marciano sexual assault claims

Guess? Inc (NYSE:GES) was one of the few stocks in New York to be left on the shelves on Monday after the fashion retailer confirmed it had set up a special committee to look into allegations of improper conduct by its co-founder Paul Marciano.

The LA-based company saw almost 20% wiped from its value in one day earlier this month after supermodel Kate Upton took aim at Marciano on Twitter.

The stock fell another 5.4% shortly before the close on Monday to US$14.76.

It’s disappointing that such an iconic women’s brand @GUESS is still empowering Paul Marciano as their creative director #metoo

— Kate Upton (@KateUpton) January 31, 2018

Upton claims that the Guess? creative director verbally assaulted and harassed her when she was on her first professional modelling shoot when she was 18.

Guess? has denied any misconduct on the part of Marciano but said it would investigate Upton’s concerns if it determines “they have any merit”. The 65-year-old himself has also separately denied the claims.

The committee will be made up of two independent directors, Guess? said in after-hours statement on Friday.

The allegations against Marciano come in the wake of Harvey Weinstein scandal, with several women coming forward to accuse the movie producer of sexual abuse.

Claims have also been made against Steve Wynn – the name and face of Wynn Resorts Limited (NASDAQ:WYNN) – who was forced to resign from his role as chief executive and chairman of the casino and hotels group last week.

Both Weinstein and Wynn have denied the allegations.

Story by ProactiveInvestors