BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Tupperware Brands Corporation (“Tupperware” or the “Company”) (NYSE: TUP) securities between January 30, 2019 and February 24, 2020, inclusive (the “Class Period”). Tupperware investors have until April 27, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Tupperware investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On February 24, 2020, after the market closed, Tupperware issued a press release announcing preliminary financial results for fiscal 2019. Therein, the Company disclosed an “investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business” and estimated that the pre-tax impact of these issues would be approximately $50 million to $52 million. Moreover, due to the investigation, Tupperware stated that it could not timely file its annual report on Form 10-K for fiscal 2019. The Company said it expects 2019 net earnings per share “in the range of breakeven to $0.34 versus $3.11 in the prior year,” and adjusted EPS of $1.35 to $1.70, which is below consensus estimates of $2.79. Finally, Tupperware expected “a need for relief concerning its existing leverage ratio covenant in its $650 million Credit Agreement.”
On this news, Tupperware’s stock price fell $2.61 per share, or over 45%, to close at $3.11 per share on February 25, 2020, on unusually heavy trading volume.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) that Tupperware lacked effective internal controls; (2) that, as a result, Tupperware would need to investigate Fuller Mexico’s accounting and liabilities; (3) that, consequently, Tupperware would be unable to timely file its annual report on Form 10-K for its fiscal year 2019; (4) that Tupperware did not properly account for its accounts payable and accrued liabilities at Fuller Mexico; (5) that Tupperware provided overvalued earnings per share guidance; (6) that Tupperware would need relief from its $650 million Credit Agreement; and (7) that, as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
If you purchased Tupperware securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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