Corporate Law News

Bubble Wrap Maker’s Tax, Audit Change Woes Draw Derivative Suit

Jan. 15, 2020, 6:49 PM

Sealed Air Corp.'s leadership allegedly misled investors about a $1.49 billion tax deduction and related auditing changes, shareholders say in Delaware federal district court.

The Bubble Wrap and Cryovac maker’s directors and officers didn’t tell investors that the deduction was improper and meant to artificially inflate Sealed Air’s stock price, a shareholder says in a Tuesday filing in the U.S. District Court for the District of Delaware.

The company’s leadership also failed to tell investors its appointment of a new auditor—Ernst & Young LLP, which isn’t a defendant in the shareholder suit—was “the result of a flawed and conflicted process...

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