Robbins Arroyo LLP: Lawsuit Alleges That Officers and Directors of Newell Brands Inc. (NWL) Breached Their Fiduciary
Duties
Shareholder rights law firm
Robbins Arroyo LLP reminds shareholders that purchasers of Newell Brands Inc. (NYSE: NWL) filed a shareholder derivative
complaint against the company's officers and directors for breaches of their fiduciary duties from February 6, 2017 through the
present. Newell designs, manufactures, sources, and distributes consumer and commercial products worldwide.
View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/newell-brands-inc-jan-19/
Newell Accused of Hiding Truth Behind Sales Decline
According to the complaint, Newell failed to disclose that the company's retail channel was loaded with extremely high levels of
unsold product. On November 2, 2017, Newell announced that its core sales growth was below Wall Street estimates because "retailers
were pull[ing] back on order rates and rebalanced inventories" in order to reduce previously undisclosed buildup of inventory in
the retail channel. On January 25, 2018, Newell announced that its estimated core sales growth for fiscal year 2017 would be 0.8%,
below previously issued guidance of 1.5% to 2.0%. Newell further indicated that the company was considering a divestiture that
would result in a 50% reduction in both Newell's customer base and its global factory and warehouse footprint. On this news,
Newell's stock fell nearly 21% to close at $24.81 per share on January 25, 2018, and has yet to recover from this decline. The
stock has continued to decline and currently trades at just $16.55.
Newell Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid
Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service,
Stock Watch.
Attorney Advertising. Past results do not guarantee a similar outcome.
Leonid Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
LKandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190122005798/en/