NEW YORK–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-sealed-air-class-action-lawsuit.html) today announced that it filed a class action on behalf of an institutional investor seeking to represent purchasers of Sealed Air Corporation (NYSE:SEE) common stock during the period between November 5, 2014 and August 6, 2018 (the “Class Period”). This action was filed in the Southern District of New York and is captioned UA Local 13 & Employers Group Insurance Fund v. Sealed Air Corp., et al., No. 19-cv-10161.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Sealed Air common stock during the Class Period to seek appointment as lead plaintiff in the Sealed Air class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Sealed Air class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Sealed Air class action lawsuit. An investor’s ability to share in any potential future recovery of the Sealed Air class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Sealed Air class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the Sealed Air class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-sealed-air-class-action-lawsuit.html.
The Sealed Air class action lawsuit charges Sealed Air and certain of its current and former officers with violations of the Securities Exchange Act of 1934. Sealed Air specializes in providing packing solutions to the food, e-Commerce, electronics, and industrial markets. Two of Sealed Air’s most iconic brands include Bubble Wrap packaging and Cryovac shrink wrap, which was acquired in 1998 from W.R. Grace & Co. (“Grace”).
The Sealed Air class action lawsuit alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Sealed Air’s business, operations, and financial condition. Specifically, defendants failed to disclose that Sealed Air’s deduction of $1.49 billion in connection with a settlement of asbestos liabilities was indefensible and done for the improper purpose of artificially inflating Sealed Air’s financial results; that Sealed Air had switched auditors pursuant to a conflicted and improper process and in order to help facilitate defendants’ efforts to engage in accounting fraud; and that Sealed Air had artificially inflated its earnings, cash flows, and operating income during the Class Period. As a result of this information being withheld from the market, Sealed Air common stock traded at artificially inflated prices of more than $52 per share during the Class Period.
Then, on August 6, 2018, Sealed Air revealed that it had received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) requesting documents and information concerning Sealed Air’s accounting for income taxes and financial reporting and disclosures. Analysts widely viewed the SEC investigation as relating to Sealed Air’s improper tax deductions. On this news, the price of Sealed Air stock fell over 5% to close at $41 per share on August 7, 2018.
In June 2019, Sealed Air terminated its Chief Financial Officer (“CFO”) “for cause” following the receipt of a second subpoena. Subsequently, the government investigation into Sealed Air was expanded into a criminal inquiry and included an investigation into the termination of Sealed Air’s CFO and Sealed Air’s auditor hiring process.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.