Robbins Arroyo LLP: Newell Brands Inc. (NWL) Misled Shareholders According to a Recently Filed Class Action
SAN DIEGO & HOBOKEN, N.J.--(BUSINESS WIRE)--Jul 30, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Newell Brands Inc. (NYSE: NWL) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 6, 2017 and January 24, 2018. 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-july-2018/
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, which made it more likely that the company would experience slower sales growth. In addition, Newell’s business fundamentals were not improving as Newell officials claimed and internal discord was contributing to the adverse effect on the company’s operating performance. On November 2, 2017, the company announced that net sales declined by 7%, admitting that 2017 third quarter results were below expectations due to weak “late-quarter sales” related to retail inventory rebalancing. Then, on January 25, 2018, Newell announced 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.
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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View source version on businesswire.com:https://www.businesswire.com/news/home/20180730005810/en/
CONTACT: Robbins Arroyo LLP
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SOURCE: Robbins Arroyo LLP
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PUB: 07/30/2018 06:21 PM/DISC: 07/30/2018 06:21 PM