LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz (“FRC”) reminds investors of the upcoming January 2, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of Sealed Air Corporation (“Sealed Air” or the “Company”) (NYSE: SEE) investors who purchased common stock between November 5, 2014 and August 6, 2018, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On August 6, 2018, the Company revealed that it had received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) regarding Sealed Air’s accounting for income taxes and financial reporting and disclosures.
On this news, the Company’s share price fell $2.19 per share, or over 5%, to close at $41.00 per share on August 7, 2018, thereby injuring investors.
Then, on June 20, 2019, after the market closed, Sealed Air announced that it had terminated for cause its Chief Financial Officer, William G. Stiehl, following an internal review by the Audit Committee. According to the Company, this review is related to another SEC subpoena regarding the selection of the Company’s independent auditor, Ernst & Young (“E&Y”) and the independence of E&Y.
On this news, the Company’s share price fell $1.97 per share, or nearly 5%, to close at $41.70 per share on June 21, 2019, thereby injuring investors further.
Then, on August 2, 2019, Sealed Air revealed that the investigation by government authorities had expanded into a criminal inquiry that included the circumstances surrounding Stiehl’s termination.
Then, on August 12, 2019, Sealed Air announced that it replaced E&Y as its auditor due to the pending investigations and to allow for an orderly transition in auditors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had hired its auditor, E&Y, pursuant to a conflicted and improper process and in order to help facilitate defendants’ efforts to engage in accounting fraud; (2) that Sealed Air’s deduction of $1.49 billion, in connection with a settlement resolving asbestos-related liabilities, was indefensible and done for the improper purpose of artificially inflating the Company’s financial results; (3) that Sealed Air had artificially inflated its earnings, cash flows, and operating income; (4) that, as a result of the foregoing, the Company’s financial statements were materially false and misleading; and (5) that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Sealed Air common stock during the Class Period you may move the Court no later than January 2, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of FRC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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