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Investing.com — Tupperware (NYSE:TUP) sank 17% amid a legal investigation.
The law firm of Khan Swick & Foti said on July 31 that it is investigating the container company and whether Tupperware’s executives or directors breached their fiduciary duties to shareholders or violated laws.
Shares are trading around $13, almost ten times the price in March, when the company filed its 10-K confirming a host of negative results, and said an investigation had identified certain activities of “operational risk” potentially involving fraud and unauthorized activities.
That came about a month after Tupperware delayed its 10-K report because of the investigation into accounts payable and accrued liabilities at its Fuller Mexico beauty business resulting in an expected full-year 2019 negative impact on an adjusted pre-tax basis in the range of $19 million to $21 million, expected total impairments of approximately $31 million, and total pretax impact for 2019 of approximately $50 million to $52 million, among other negative effects.
The company and some executives have been sued in a securities class action lawsuit, charged with failing to disclose material information and violating federal securities laws.
