Newell Brands And Former CEO Fined For Misleading Investors About Sales Performance
Portfolio Pulse from Nabaparna Bhattacharya
Newell Brands Inc. (NASDAQ:NWL) has been charged by the U.S. Securities and Exchange Commission (SEC) for misleading investors about its core sales growth. The company's former CEO, Michael Polk, is also charged for actions that artificially increased the company's publicly disclosed core sales growth in 2016 and 2017. Newell and Polk have agreed to pay civil penalties of $12.5 million and $110,000, respectively, without admitting or denying the SEC's findings. Despite the news, NWL shares are trading higher by 4.43%.
September 29, 2023 | 3:51 pm
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NEUTRAL IMPACT
Newell Brands has been charged by the SEC for misleading investors about its sales growth. Despite this, the company's shares are trading higher.
The charges by the SEC are a significant legal and regulatory issue for Newell Brands. However, the market reaction has been positive, with shares trading higher. This suggests that investors may have already priced in the risk of regulatory action, or they may be focusing on other factors.
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IMPORTANCE 75
RELEVANCE 100