NEW YORK, June 25, 2018 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Newell Brands, Inc. (“Newell” or the “Company”) (NYSE: NWL ) of the August 20, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Newell stock or options between February 6, 2017 and January 24, 2018 and would like to discuss your legal rights, click here : www.faruqilaw.com/NWL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26 th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Newell common stock between February 6, 2017 and January 24, 2018 (the “Class Period”). The case, Bucks County Employees Retirement Fund v. Newell Brands, Inc. et al, No. 18-cv-10878 was filed on June 21, 2018, and has been assigned to Judge Katharine Sweeney Hayden.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements and/or failing to disclose that: (1) the Company's retail channel was loaded with extremely high levels of unsold Newell product; (2) contrary to the Company’s representations, the build-up of Newell inventory in the retail channel was due to Company-specific rather than macroeconomic reasons; (3) 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 (4) 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.
Specifically, on November 2, 2017, Newell announced disappointing third quarter 2017 financial results. During the related earnings call, Newell executives disclosed that the Company’s materially lower core sales growth were due to "retailers pulling back on order rates and rebalance inventories" to help clear the known, but previously undisclosed build-up of Newell inventory in the retail channel.
On this news, the price of Newell’s common stock fell from a closing price of $41.00 on November 1, 2017 to $30.01 on November 2, 2017—a $10.99 or 26.80% drop.
Then, on January 25, 2018, Newell announced 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 of Directors had resigned.
On this news, the price of Newell common stock fell from a closing price of $31.23 on January 24, 2018 to $24.81 on January 25, 2018—a $6.42 or 20.66% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Newell’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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