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.