The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.
If you are a shareholder who suffered a loss, click here to participate.
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.
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If you purchased Tupperware securities during the Class Period, you may move the Court no later than April 27, 2020 to ask the Court to appoint you as lead plaintiff. 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 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 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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