#United States #SEC #Costa Mesa #Fair Fund #Newell Brands

Overview of Newell Brands Inc. Fair Fund Distribution

In a significant regulatory update, the United States Securities and Exchange Commission (SEC) has issued a statement regarding the distribution of a Fair Fund aimed at compensating investors who purchased shares of Newell Brands Inc. between October 28, 2016, and November 1, 2017. This action follows administrative proceedings against Newell Brands and its former CEO, Michael B. Polk, due to misleading financial disclosures.

Background of the Case

The SEC’s investigation revealed that Newell Brands engaged in practices that inflated its core sales growth metrics without corresponding actual sales. Specifically, these misleading disclosures were made using non-GAAP measures, which the SEC found to be unacceptable. As a result, the Commission imposed penalties totaling $12.61 million against Newell Brands and Polk, establishing a Fair Fund to recompense affected shareholders. This case underscores the critical importance of transparency and accuracy in financial reporting and the SEC's commitment to protecting investors.

Details of the Fair Fund

The Fair Fund has been established under Section 308(a) of the Sarbanes-Oxley Act and is designated for distribution to harmed investors. To be eligible for a payment from the fund, investors must have fulfilled specific criteria:
1. Timing of Purchase: Eligible claimants must have purchased Newell common stock within the specified period.
2. Recognized Loss: The transactions should result in a minimum recognized loss of at least $10.00 as defined under the Plan of Distribution.
3. Claim Submission: Claimants are required to submit a valid Claim Form to qualify for a distribution from the Fair Fund.
4. Exclusions: Certain parties may be excluded from receiving compensation under the Plan.

How to Claim Your Payment

Investors seeking compensation from the Fair Fund can file their claims through the official website, NewellBrandsFairFund.com. The deadline for submission is June 12, 2025, and the process can be completed entirely online for convenience. Alternatively, those preferring to submit paper forms can request a physical copy by contacting the fund administrator via email or phone.

Once claims are processed, the Fund Administrator will send determination notices to eligible claimants, detailing each individual's recognized loss calculation. Investors are encouraged to address any disputes regarding their calculations in a timely manner, as stated in the distribution plan.

Conclusion

The SEC's announcement is a vital reminder for investors of their rights and the importance of diligence in understanding their investments. For individuals who purchased Newell Brands common stock during the specified timeframe, this distribution process signifies an opportunity to recover losses incurred due to misleading information. Interested parties should ensure they familiarize themselves with the eligibility criteria and follow the necessary steps to claim their rightful compensation. For further details and assistance, they can visit the Fair Fund website or contact the Fund Administrator directly.

In conclusion, transparency in corporate governance and accountability remains key in maintaining investor confidence, as reflected by the SEC's efforts in administering the Fair Fund for those affected by Newell Brands’ previous actions.