According to the law firm press release, Newell Brands Inc. ("Newell") is a global manufacturer and marketer of name-brand consumer products. In April 2016, Newell Rubbermaid, whose brands included Paper Mate®, Sharpie®, Rawlings®, Lenox®, Sunbeam®, Graco® and Rubbermaid®, acquired Jarden Corporation (“Jarden”), a global consumer products company whose brands included Crock-Pot®, FoodSaver®, Mr. Coffee®, Oster®, Coleman®, K2®, Marker® and Marmot®. The combined company was renamed Newell Brands Inc.
The Complaint alleges that during the Class Period, Defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Newell’s business and prospects. Specifically, Defendants misrepresented and/or failed to disclose the following adverse facts, among others: (i) the Company’s retail channel was loaded with extremely high levels of unsold Newell product; (ii) contrary to Defendants’ representations, the build-up of Newell inventory in the retail channel was due to Company-specific rather than macroeconomic reasons; (iii) 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 (iv) 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, the Complaint alleges that the price of Newell common stock was artificially inflated during the Class Period to more than $55.00 per share.
On September 27, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on November 28. Defendants filed a Motion to Dismiss the consolidated Complaint on January 28, 2019. On December 10, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Plaintiffs did not file an amended Complaint, and on January 10, 2020, the Court issued an Order dismissing the case with prejudice. Lead Plaintiff filed a Notice appealing the Court's dismissal Order on February 7.