The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Sealed Air Corp. (...
31 December 2019 - 11:57AM
Business Wire
The Law Offices of Frank R. Cruz (“FRC”) reminds investors of
the upcoming January 2, 2020 deadline to file a lead
plaintiff motion in the class action filed on behalf of Sealed Air
Corporation (“Sealed Air” or the “Company”) (NYSE: SEE) investors
who purchased common stock between November 5, 2014 and August
6, 2018, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to
participate.
On August 6, 2018, the Company revealed that it had received a
subpoena from the U.S. Securities and Exchange Commission (“SEC”)
regarding Sealed Air’s accounting for income taxes and financial
reporting and disclosures.
On this news, the Company’s share price fell $2.19 per share, or
over 5%, to close at $41.00 per share on August 7, 2018, thereby
injuring investors.
Then, on June 20, 2019, after the market closed, Sealed Air
announced that it had terminated for cause its Chief Financial
Officer, William G. Stiehl, following an internal review by the
Audit Committee. According to the Company, this review is related
to another SEC subpoena regarding the selection of the Company’s
independent auditor, Ernst & Young (“E&Y”) and the
independence of E&Y.
On this news, the Company’s share price fell $1.97 per share, or
nearly 5%, to close at $41.70 per share on June 21, 2019, thereby
injuring investors further.
Then, on August 2, 2019, Sealed Air revealed that the
investigation by government authorities had expanded into a
criminal inquiry that included the circumstances surrounding
Stiehl’s termination.
Then, on August 12, 2019, Sealed Air announced that it replaced
E&Y as its auditor due to the pending investigations and to
allow for an orderly transition in auditors.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that the Company had hired its auditor, E&Y,
pursuant to a conflicted and improper process and in order to help
facilitate defendants’ efforts to engage in accounting fraud; (2)
that Sealed Air’s deduction of $1.49 billion, in connection with a
settlement resolving asbestos-related liabilities, was indefensible
and done for the improper purpose of artificially inflating the
Company’s financial results; (3) that Sealed Air had artificially
inflated its earnings, cash flows, and operating income; (4) that,
as a result of the foregoing, the Company’s financial statements
were materially false and misleading; and (5) that as a result,
defendants’ statements about its business, operations, and
prospects, were materially false and misleading and/or lacked a
reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Sealed Air common stock
during the Class Period you may move the Court no later than
January 2, 2020 to request appointment as lead plaintiff in
this putative class action lawsuit. 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 wish to learn more about this class action, or if you
have any questions concerning this announcement or your rights or
interests with respect to the pending class action lawsuit, please
contact Frank R. Cruz, of FRC, 1999 Avenue of the Stars, Suite
1100, Los Angeles, California 90067 at 310-914-5007, by email to
fcruz@frankcruzlaw.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.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20191230005358/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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