Tupperware class action alleges company misled investors with false performance claims

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Overview of the Tupperware Investor Class Action:

  • Who: Michael Edge has filed a class action lawsuit against Tupperware Brands Corporation and top executives Miguel Fernandez and Cassandra Harris.
  • Why: Edge claims that Tupperware harmed investors financially by making false and misleading statements about its business, operations and compliance policies.
  • Where: The class action lawsuit was filed in federal court in New York.

Tupperware Brands Corporation and its senior executives have made “materially false and misleading” statements about its business, operations and compliance policies, according to a new federal securities class action lawsuit.

Plaintiff Michael Edge says Tupperware, along with its president and CEO Miguel Fernandeaz and chief financial officer and chief operating officer Cassandra Harris, did not disclose that it “faces significant challenges” in maintaining its profits and sales.

Edge further claims that Tupperware’s 2022 annual guidance was “unrealistic” and/or “unsustainable”, which, when revealed, would likely have a “significant negative impact” on the company’s financial condition.

“As a result, the company’s public statements were materially false and misleading at all relevant times,” the Tupperware class action lawsuit states.

Tupperware announced its first-quarter 2022 financial results on May 4, revealing, among other things, that its adjusted earnings from continuing operations and net sales were “well below consensus estimates,” according to the Tupperware class action lawsuit.

Tupperware class action claims company blames ‘less than expected’ results on Russia-Ukraine war

Edge claims that Tupperware initially blamed its lower-than-expected financial results on the war between Russia and Ukraine; however, he maintains that the company later admitted that Russia and Ukraine accounted for only 2% of its revenue.

On news of Tupperware’s first quarter financial results, the company’s stock price fell about 32% on May 4, according to the Tupperware class action lawsuit.

“As a result of defendants’ wrongful acts and omissions and the precipitous decline in the market value of the company’s securities, plaintiff and other class members suffered substantial losses and damages,” the Tupperware class action lawsuit states.

Edge claims that Tupperware, Fernandez and Harris are violating the Stock Exchange Act of 1934. He is asking for a jury trial and seeking damages for himself and all members of the class.

He wants to represent a national class of investors who purchased or otherwise acquired Tupperware securities between Nov. 3, 2021 and May 3, 2022, and were harmed “at the revelation of the purported corrective disclosures.”

In 2018, some consumers suspected that Tupperware was record incoming customer service calls without first obtaining his consent.

Were you hurt financially after Tupperware released its first quarter financial results? Let us know in the comments!

Plaintiffs are represented by Jeremy A. Lieberman, J. Alexander Hood II and Thomas H. Przybylowski of Pomerantz LLP and Lesley F. Portnoy of Portnoy Law Firm.

The Tupperware Investor Class Action is Edge c. Tupperware Brands Corporation, et al.Case No. 1:22-cv-04976, in the U.S. District Court for the Southern District of New York.

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