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Wednesday, April 1, 2020

Tupperware deceived investors on trouble with Mexico enterprise, class action suit says

Federal Court

By David Beasley | Mar 13, 2020

Fate

FT. MYERS, Florida (Legal Newsline) – Tupperware Brands Corp. misled investors about a business it owned in Mexico, according to a class action lawsuit.

On Feb. 24, Tupperware announced “an investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business,” and that it was forecasting the need for relief on a $650 million credit agreement, the lawsuit said. 

The stock dropped 45 percent on the news, according to the complaint filed Feb. 28 in the U.S. District Court for the Middle District of Florida.

Tupperware failed to tell investors about the accounting irregularities in Mexico and the need for relief on the credit agreement, the complaint said. It also provided overvalued earnings-per-share guidance, the suit said.

“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, plaintiff and other class members have suffered significant losses and damages,” according to the complaint.

The suit, filed on behalf of shareholders from Jan. 30, 2019 to Feb. 24, 2020 seeks unspecified monetary damages.

U.S. District Court for the Middle District of Florida case number 6:20-cv-00357  

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U.S. District Court for the Middle District of Florida