Tupperware Brands Corporation Class Action Lawsuit
- Company Name
- Tupperware Brands Corporation
- Stock Symbol
- Class Period
- January 30, 2019 to February 24, 2020
- Central District of California
On February 25, 2020, the Tupperware Brands Corporation securities class action lawsuit was filed charging Tupperware and certain of its current and former officers with violations of the Securities Exchange Act of 1934. The Tupperware securities class action lawsuit was commenced in the Central District of California on behalf of purchasers of Tupperware securities between January 30, 2019 and February 24, 2020 (the “Class Period”) and is captioned Bertrim v. Tupperware Brands Corporation, et al., No. 20-cv-01798.
Tupperware operates as a direct-to-consumer marketer of various products and engages in the manufacture and sale of products under the Tupperware brand name.
The Tupperware securities class action lawsuit alleges that during the Class Period, defendants failed to disclose that: (1) Tupperware lacked effective internal controls; (2) as a result, Tupperware would need to investigate its Fuller Mexico beauty business’s accounting and liabilities; (3) consequently, Tupperware would be unable to timely file its annual report on Form 10-K for fiscal year 2019; (4) Tupperware did not properly account for its accounts payable and accrued liabilities at Fuller Mexico; (5) Tupperware provided overvalued earnings per share guidance; (6) Tupperware would need relief from its $650 million Credit Agreement; and (7) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. As a result of this information being withheld from the market, Tupperware securities traded at artificially inflated prices of more than $31.00 per share during the Class Period.
On February 24, 2020, Tupperware announced that it would be unable to timely file its annual report and that “[t]he Company is conducting an investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business to determine the extent to which these matters may further impact results and to assess and enhance the effectiveness of internal controls at this business.” Tupperware also announced that the total pre-tax impact for 2019 stemming from this matter would be approximately $50-$52 million. Tupperware also revealed that “the Company is forecasting a need for relief concerning its existing leverage ratio covenant in its $650 million Credit Agreement . . . to avoid a potential acceleration of the debt, which could have a material adverse impact on the Company.” On this news, Tupperware’s stock price fell more than 45% to close at $3.11 per share on February 25, 2020 – a decline of nearly 90% from its Class Period high.
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