Defendant Name: Newell Brands Inc.

Defendant Type: Public Company

Document Reference: 2023-210

Document Details

Legal Case Name In the Matter of Newell Brands Inc. and Michael B. Polk
Document Name SEC Charges Newell Brands and Former CEO for Misleading Investors About Sales Performance
Document Date 29-Sep-2023
Document Format Administrative Proceeding
File Number 3-21766
Allegation Type Issuer Reporting and Disclosure
Document Summary On September 29, 2023, the SEC stated that: "[It] charged Newell Brands Inc., a Georgia-based consumer products company and its former CEO, Michael Polk, with misleading investors about Newell’s core sales growth, a non-GAAP (Generally Accepted Accounting Principles) financial measure the company used to explain its underlying sales trends. Both parties agreed to settle the SEC charges."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Monetary Penalties:

Civil Penalty

Individual:     $12,500,000.00 Shared:    

Related Documents:

33-11251 29-Sep-2023 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Finds, and Imposing a Cease-and-Desist Order
On September 29, 2023, the SEC instituted settled cease-and-desist proceedings against Newell Brands Inc. and Michael B. Polk, stating: "This matter involves Newell’s misleading statements regarding non-GAAP financial measures that it called “core sales growth” and “core sales,” which Newell described in its earnings releases as giving investors “a more complete understanding of underlying sales trends.” Newell explained that the core sales measure would allow investors to understand “sales on a consistent basis” by removing from its “net sales” measure the effects of acquisitions, divestitures, and foreign currency fluctuations. Newell disclosed its year-over-year core sales growth rate as part of the headline of its quarterly earnings releases. Newell also provided investors guidance about its expected core sales growth rate, and analysts followed Newell’s publicly announced core sales growth."
34-99077 04-Dec-2023 Administrative Proceeding
Extension Order
The Commission ordered that: "Division’s request for an extension of time until December 4, 2024, to submit a Proposed Plan of Distribution is granted."
34-99618 28-Feb-2024 Administrative Proceeding
Order Appointing Tax Administrator
The Commission ordered that: "Miller Kaplan Arase LLP is appointed as the Tax Administrator for the QSF in the above-referenced proceeding."
34-101313 11-Oct-2024 Administrative Proceeding
Order Appointing Fund Administrator, Setting Administrator's Bond Amount, and Authorizing the Approval and Payment of Fees and Expenses of Administration
The SEC ordered that: "A. Simpluris is appointed as the Fund Administrator . . . ; B. Simpluris shall obtain a bond . . . in the amount of $12,610,000; C. the Fund Administrator will submit invoices to the Commission staff for services rendered . . . ; and D. . . . OFM is authorized to pay the Fund Administrator's fees and expenses from the Fair Fund."

Other Defendants in Action:

Michael B. Polk