On February 24, 2020, Tupperware Brands Corporation (NYSE: TUP) issued a press release that sent the company’s stock into a downward spiral. The press release included Tupperware’s preliminary financial results for 2019. According to the statement, the report was to provide a full-year fiscal 2020 outlook. The report indicates that full-year sales are expected to be down 12% to 14%. In addition, the company announced that it would be “conducting an investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business to determine the extent to which these matters may further impact results and to assess and enhance the effectiveness of internal controls at this business.”
The announcement sent shockwaves throughout the industry. Shares of the company immediately dropped. As reported by the Orlando Business Journal, the stock price fell from $5.95 per share on February 21 to $2.42 on March 3, resulting in a nearly 60% decline. The press release also prompted the filing of a class-action lawsuit on behalf of shareholders.
In order to determine the full fiscal impact of the Fuller Mexico financial reporting issues, the company is filing a Form 12b-25 Notification of Late Filing with the Securities and Exchange Commission. The form provides a “15-calendar day extension within which to file its Form 10-K for the fiscal year ended December 28, 2019.” It is estimated that the “Fuller Mexico full-year 2019 negative impact on an adjusted* pre-tax basis is expected to be in the range of $19-21 million.”
If you invested in Tupperware and have suffered financial losses of at least $100,000, please contact Levin Law. Levin Law is investigating whether the company failed to properly supervise or lacked the proper internal controls to prevent the Fuller Mexico financial reporting problems.