Why, specifically, the SEC is investigating Iconix is unclear, but according to a companion CNBC report, there are concerns about the company's financial reporting. Jay z offered assets and also his Rocawear apparel fresh to Iconix more than just a decade past.
The SEC, a Wall Street watchdog agency, wants Carter to testify as a part of the probe, but Carter has been M.I.A.
In a statement issued through Jay-Z's attorneys, a representative said he was outside the scope of the SEC inquiry.
Hip-hop superstar Jay-Z has been summoned to a NY federal court to answer questions related to the 2007 sale of his Rocawear clothing brand. "If respondent [Carter] refuses to appear on the appointed date and time, the Commission will have established a prima facie case of civil contempt against him, and he may be held in civil contempt for failure to comply with the Order without further notice or hearing", the order said. The statement said the singer is a private citizen "who should not be involved in this matter".
Tesla sheds $2BILLION after Musk slams "boring bonehead" questions on firm's finances
Automotive revenue rose only 1 percent from the prior quarter to $2.74 billion (roughly Rs. 18,300 crores). Mr Musk, who is also CEO of private aerospace manufacturer SpaceX, said: "Excuse me, excuse me".
Lawyers at Sweden's Roschier and SEB firms are seeking more than $500,000 in damages amid allegations suggesting they have yet to be paid in full for representing Jay-Z's S. Carter Enterprises in the deal. However, "The application does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation", it says.
The SEC said it is probing Iconix for possible financial reporting violations.
Carter, who married 22-time Grammy award victor Beyoncé in 2008, is worth an estimated $810 million, according to Forbes. But in March 2016, Iconix lowered the value of Rocawear by $169 million, according to the SEC.
A Iconix spokesperson could not be immediately reached for comment.