CLASS ACTION UPDATE: LAW OFFICE OF BRODSKY & SMITH, LLC REMINDS INVESTORS OF DEADLINE IN CLASS ACTION AGAINST SEALED AIR CORPORATION (NYSE: SEE)

BALA CYNWYD, November 13, 2019 /Access Wire/ – Law office of Brodsky & Smith, LLC reminds investors of the deadline to file to be a lead plaintiff regarding claims against Sealed Air Corporation (“Sealed Air” or the “Company”) (NYSE – SEE – News) for possible breaches of Federal Securities law.

According to the filed complaint, Sealed Air specializes in providing packing solutions in the food, e-Commerce, electronics, and industrial markets. In 1998, Sealed Air completed a transaction with W.R. Grace & Co. (“Grace”) pursuant to which Sealed Air acquired Grace’s Cryovac packing 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.  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, 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”).  In February 2014, Grace emerged from bankruptcy and, in accordance with the Settlement and Grace’s approved reorganization plan, Sealed Air paid $930 million and 18 million Sealed Air shares into two trusts established for the benefit of asbestos claimants.  In connection with the Settlement, Sealed Air recognized a $1.49 billion income tax deduction.  Later, the IRS challenged the $1.49 billion deduction as improper, a claim that Sealed Air has strenuously denied. In late 2014, as Sealed Air was finalizing its accounting treatment for the improper $1.49 billion tax deduction, Sealed Air fired its auditor KPMG LLP and hired Ernst & Young LLP (“E&Y”).

According to the filed complaint, on August 6, 2018, Sealed Air filed its quarterly report on a Form 10-Q for the second quarter of 2018, which revealed that Sealed Air had received a subpoena from the SEC requesting documents and information concerning its accounting for income taxes and financial reporting and disclosures. Analysts widely viewed the SEC investigation as relating to Sealed Air’s tax treatment of the Settlement.  Following this news, the price of Sealed Air stock fell over 5% to close at $41 per share on August 7, 2018.

The filed complaint alleges that, throughout the Class Period, the defendants failed to disclose the following adverse facts pertaining to Sealed Air’s business, operations and financial condition, which were known to or recklessly disregarded by the defendants: (a) Sealed Air had hired its auditor, E&Y, pursuant to a conflicted and improper process and in order to help facilitate the defendants’ efforts to engage in accounting fraud; (b) Sealed Air’s deduction of $1.49 billion in connection with the Settlement was indefensible and done for the improper purpose of artificially inflating Sealed Air’s financial results; (c) Sealed Air had artificially inflated its earnings, cash flows, and operating income during the Class Period; (d) as a result of the above, Sealed Air’s Class Period financial statements were materially false and misleading and not prepared in conformance with GAAP; and (e) as a result of the above, Sealed Air’s statements regarding its financial results, business, and prospects were materially misleading.

If you purchased shares of Sealed Air between November 5, 2014 – August 6, 2018 and wish to discuss the legal ramifications of  the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is December 31, 2019. You may contact Marc Ackerman, Esquire or Jordan Schatz, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, or by calling toll free 877-534-2590.

Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.