SAN DIEGO & HOBOKEN, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds shareholders that purchasers of Newell Brands Inc. (NYSE: NWL) filed a shareholder derivative complaint against the company's officers and directors for breaches of their fiduciary duties from February 6, 2017 through the present. Newell designs, manufactures, sources, and distributes consumer and commercial products worldwide.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/newell-brands-inc-jan-19/
Newell Accused of Hiding Truth Behind Sales Decline
According to the complaint, Newell failed to disclose that the company's retail channel was loaded with extremely high levels of unsold product. On November 2, 2017, Newell announced that its core sales growth was below Wall Street estimates because "retailers were pull[ing] back on order rates and rebalanced inventories" in order to reduce previously undisclosed buildup of inventory in the retail channel. On January 25, 2018, Newell announced that its estimated core sales growth for fiscal year 2017 would be 0.8%, below previously issued guidance of 1.5% to 2.0%. Newell further indicated that the company was considering a divestiture that would result in a 50% reduction in both Newell's customer base and its global factory and warehouse footprint. On this news, Newell's stock fell nearly 21% to close at $24.81 per share on January 25, 2018, and has yet to recover from this decline. The stock has continued to decline and currently trades at just $16.55.
Newell Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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