Investigation of Tupperware Brands Corporation
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Tupperware Brands Corporation (TUP) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between January 30, 2019 and February 24, 2020, on February 26, 2019, Tupperware filed its annual report on Form 10-K for fiscal year 2018, concluding that “the Company’s internal control over financial reporting was effective as of the end of the period covered by the report.” Tupperware continued to attest to the accuracy of its financial reporting in later quarterly 2019 reports and repeatedly assured that there had been no changes in its internal controls. Despite these statements, on February 24, 2020, Tupperware announced that it would be unable to file its annual report for fiscal year ended December 28, 2019, revealing that it was “conducting an investigation primarily into accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business.” The Company disclosed that total impairments for Fuller Mexico are expected to be approximately $31 million. Tupperware also stated “the Company is forecasting a need for relief concerning its existing leverage …its $650 million credit agreement… to avoid a potential acceleration of debt, which could have a material adverse impact on the Company.” On this news, Tupperware’s stock price plummeted 45.6% to close at $3.11.