Tupperware Brands Corporation shares are down over 20 percent in pre-market trading today following the launch of an investigation into the company’s financial accounting by Shareholder Rights Law Firm Johnson Fistel, LLP.
Johnson Fistel is investigating potential violations of the federal securities laws by Tupperware and its officers and directors following yesterday’s announcement by Tupperware that it was conducting an investigation in its financial accounting and warned of a 2019 profit shortfall.
Tupperware said it expects 2019 net earnings per share in the range of breakeven to $0.34 versus $3.11 in the prior year, and adjusted EPS of $1.35 to $1.70, which is below consensus estimates of $2.79. Tupperware is investigating the accounting for accounts payable and accrued liabilities and estimates that the total pre-tax impact for 2019 to be about $50 million to $52 million.
Tupperware released preliminary financial results for the fiscal year 2019 and announced it will file a Form 12b-25 Notification of Late Filing with the Securities and Exchange Commission to provide a 15-calendar day extension within which to file its Form 10-K for the fiscal year ended December 28, 2019. According to the company, the extension will provide it time to finalize additional procedures as part of its investigation regarding the impact of certain financial reporting matters in its Fuller Mexico beauty business and to finalize its tax rate.