Pomerantz LLP announces that a class action lawsuit has been filed against Tupperware Brands Corporation (“Tupperware” or the “Company”) (NYSE: TUP) and certain of its officers. The class action, filed in United States District Court for the Middle District of Florida, and indexed under 20-cv-00507, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Tupperware securities between January 30, 2019 and February 24, 2020, inclusive (the “Class Period”). Plaintiffs pursue claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
Tupperware operates as a direct-to-consumer marketer of various products across a range of brands and categories in Europe, Africa, the Middle East, Asia Pacific, North America, and South America. The Company engages in the manufacture and sale of an array of products for consumers under the Tupperware brand name. The Company also manufactures and distributes skin and hair care products, cosmetics, bath and body care, toiletries, fragrances, jewelry, and nutritional products under the Avroy, Shlain, Fuller, NaturCare, Nutrimetics, and Nuvo brands.
The complaint allegies that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Tupperware’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Tupperware lacked effective internal controls; (ii) accounting irregularities existed with respect to the Company’s Fuller Mexico business; (iii) the foregoing issues would foreseeably necessitate an investigation that would cause Tupperware to be be unable to timely file its 2019 annual report; (iv) Tupperware would need relief from its $650 million Credit Agreement; (v) Tupperware provided overvalued earnings per share (“EPS”) guidance; and (vi) as a result of the above, Defendants’ public statements were materially false and/or misleading at all relevant times.
On February 24, 2020, the Company issued a press release announcing that the Company “will file a Form 12b-25 Notification of Late Filing with the Securities and Exchange Commission to provide a 15-calendar day extension within which to file its From 10-K for the fiscal year ended December 28, 2019.” The February 24, 2020 press release also announced for the first time that the Company is conducting “an investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business” and that “the Company is forecasting a need for relief concerning its existing leverage ratio covenant in its $650 million Credit Agreement dated March, 29, 2019.”
On this news, the Company’s stock price fell $2.61 per share, or 45.63%, to close at $3.11 per share on February 25, 2020.