SHAREHOLDER ALERT - Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against Newell Brands Inc. (NWL) and Lead Plaintiff Deadline: August 20, 2018
NEW YORK, June 22, 2018 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Newell Brands, Inc. ("Newell" or the "Company") (NYSE: NWL) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Newell Brands securities between February 6, 2017 and January 24, 2018, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/nwl.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Newell's retail channel was loaded with extremely high levels of unsold Newell product; (2) contrary to defendants' representations, the build-up of Newell inventory in the retail channel was due to Company-specific rather than macroeconomic reasons; (3) due to 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. As a result of defendants' failure to disclose this adverse information, Newell stock was artificially inflated more than $55.00 per share during the Class Period.
On November 2, 2017, Newell revealed its poor 2017 third quarter financial results. On a related earnings call, defendants said that the Company's "disappointing outcome" and low sales growth were because of "retailers pull[ing] back on order rates and rebalanced inventories". Following this news, Newell stock dropped $10.99 per share, or about 27%, or to close at $30.01. Later, on January 25, 2018, Newell preannounced its 2017 financial results and said that it expected its 2017 core sales growth of roughly 0.8% compared to the previous forecast of 1.5% to 2.0%. Newell attributed this drop to retailer inventory destocking and said it was looking into "strategic options" to restructure its business. Later that day, Newell divulged that three of its Board members had stepped down. Following these revelations, Newell stock dropped $6.42 per share, or 21%, to close at $24.81 on January 25, 2018.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/nwl or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Newell you have until August 20, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
Share this article