RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Newell Brands Inc. (“Newell” or the “Company”) (NYSE: NWL) common stock during the period between February 6, 2017 and January 24, 2018, inclusive (the “Class Period”).
Newell shareholders may, no later than August 20, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Newell and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Newell is a global manufacturer and marketer of name-brand consumer products. In April 2016, Newell Rubbermaid, whose brands included Paper Mate®, Sharpie®, Rawlings®, Lenox®, Sunbeam®, Graco® and Rubbermaid®, acquired Jarden Corporation (“Jarden”), a global consumer products company whose brands included Crock-Pot®, FoodSaver®, Mr. Coffee®, Oster®, Coleman®, K2®, Marker® and Marmot®. The combined company was renamed Newell Brands Inc.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Newell’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts, among others: (i) the Company’s retail channel was loaded with extremely high levels of unsold Newell product; (ii) contrary to defendants’ representations, the build-up of Newell inventory in the retail channel was due to Company-specific rather than macroeconomic reasons; (iii) as a result of the unusually high levels of unsold inventory in the retail channel, Newell was exposed to a heightened risk that it would experience slower sales growth in future periods; and (iv) undisclosed managerial and cultural differences in the legacy Newell and Jarden businesses had created significant internal discord that was having a material adverse effect on the Company’s operating performance. As a result of defendants’ failure to disclose this adverse information, the price of Newell common stock was artificially inflated during the Class Period to more than $55.00 per share.
On November 2, 2017, Newell announced disappointing 2017 third quarter financial results. During the related earnings call, defendants disclosed that Newell’s “disappointing outcome” and materially lower core sales growth were due to “retailers pull[ing] back on order rates and rebalanced inventories” to help clear the known, but previously undisclosed, bloated build-up of Newell inventory in the retail channel. On this news, the price of Newell stock fell approximately 27%, or $10.99 per share, to close at $30.01 per share. Then, on January 25, 2018, Newell preannounced its 2017 financial results. The Company stated that it anticipated 2017 core sales growth of approximately 0.8% versus previous guidance of 1.5% to 2.0% (implying negative 2.0% organic sales growth during the 2017 fourth quarter), due, in part, to continued retailer inventory destocking. The Company also announced it was exploring “strategic options” to significantly restructure its business by divesting industrial and commercial assets, which was expected to result in a 50% reduction in both the Company’s customer base and its global factory and warehouse footprint. The same day, Newell announced that three members of its Board had resigned. In response to these revelations, the price of Newell common stock fell approximately 21%, or $6.42 per share, to close at $24.81 per share on January 25, 2018.
If you are a member of the class, you may, no later than August 20, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.