BENSALEM, Pa., Nov. 08, 2019 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors of the upcoming January 2, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Sealed Air Corporation (“Sealed Air” or the “Company”) (NYSE: SEE) common stock between November 5, 2014 and August 6, 2018, inclusive (the “Class Period”).
Investors suffering losses on their Sealed Air investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
If you purchased shares of Sealed Air during the Class Period, you may move the Court no later than January 2, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action 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 action. 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 these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com