NEW YORK, Nov. 18, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Sealed Air Corporation ("Sealed Air" or the "Company") (NYSE: SEE). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Sealed Air and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
In 1998, Sealed Air completed a transaction with chemical conglomerate W.R. Grace & Co. ("Grace") pursuant to which Sealed Air acquired the Cryovac shrink wrap product business. As part of that transaction, Grace and its subsidiaries retained all liabilities arising out of their operations before the Cryovac transaction (including asbestos-related liabilities), other than liabilities relating to Cryovac's operations, and agreed to indemnify Sealed Air with respect to such retained liabilities.
Beginning in 2000, Sealed Air was named in a number of lawsuits alleging that the Cryovac transaction was a fraudulent transfer and/or gave rise to successor liability, and as a result that Sealed Air was responsible for the alleged asbestos liabilities of Grace and its subsidiaries. Subsequently, Grace filed for bankruptcy protection and, after protracted litigation, the parties entered into a settlement agreement to resolve their asbestos-related liabilities, which was approved by the bankruptcy court in June 2005 (the "Settlement").
On August 6, 2018, Sealed Air filed its quarterly report on Form 10-Q for the second quarter of 2018, which revealed that the Company had received a subpoena from the U.S. Securities and Exchange Commission ("SEC") requesting documents and information concerning the Company's accounting for income taxes and financial reporting and disclosures. Analysts widely viewed the SEC investigation as relating to the Company's tax treatment of the Settlement.
On this news, Sealed Air's stock price fell $2.19 per share, or 5.07%, to close at $41.00 per share on August 7, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP