Newell Brands and Former CEO Face SEC Charges for Misleading Investors

SEC charges Newell Brands and ex-CEO for misleading investors about sales. The settlement includes penalties. Get the details on the case.

Sep 29, 2023 - 10:16
Sep 29, 2023 - 10:17
 82
Newell Brands and Former CEO Face SEC Charges for Misleading Investors
Newell Brands and Former CEO Face SEC Charges for Misleading Investors

The U.S. Securities and Exchange Commission (SEC) has filed charges against Newell Brands and its former Chief Executive, Michael Polk, for providing misleading information to investors regarding sales figures.

As part of a settlement, both Newell and Polk, while not admitting to the SEC's findings, have agreed to pay civil penalties. Newell will pay $12.5 million, while Polk will pay $110,000, according to an official statement by the SEC.

The SEC alleges that Newell, a consumer products company based in Georgia, and Polk, implemented measures that artificially boosted the company's reported core sales growth. These practices were not consistent with the actual undisclosed sales trends, enabling Newell to announce robust results in quarters marked by internal disappointment due to sales shortfalls.

Furthermore, Newell allegedly advanced sales from later quarters without providing sufficient disclosure. The company also employed accounting methods that deviated from Generally Accepted Accounting Principles, as stated in the SEC order.

These actions created a false impression of the company's core sales growth aligning with its targets, ultimately depriving investors of an accurate depiction of Newell's genuine sales trends.

Also Read: Ryan Cohen Appointed as GameStop's New CEO in a Big Change

iShook Opinion Curated by iShook Opinion and guided by Founder and CEO Beni E Rachmanov. Dive into valuable financial insights at ishookfinance.com for expert articles and latest news on finance.