Sealed Air Corporation Investigated by SEC – CFO Terminated
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors and shareholders of Sealed Air Corporation (“Sealed Air” or the “Company”) (NYSE: SEE) to determine whether Sealed Air and certain of its executives violated federal securities laws.
On June 20, 2019, post-market, Sealed Air announced that the Company terminated its CFO, Bill Stiehl, for cause. The CFO’s termination came after Sealed Air commenced an internal investigation upon receiving subpoenas from the SEC. The SEC is investigating the Company’s selection and independence of its audit firm.
Specifically, Sealed Air reported the following:
On June 19, 2019, the Board of Directors (the “Board”) of Sealed Air Corporation . . . terminated the employment of William G. Stiehl as Chief Financial Officer for cause. Mr. Stiehl’s termination is related to an internal review by the Audit Committee of the Board in connection with the previously disclosed investigation by the U.S. Securities and Exchange Commission (“SEC”). This review followed the Company’s receipt of an additional subpoena for documents and information on May 2, 2019, relating to the process by which the Company selected its independent audit firm for the period beginning with fiscal year 2015, and relating to the independence of that audit firm. The Company is continuing to cooperate with the SEC’s investigation. [Emphasis added.]
On this news, Sealed Air shares traded down almost 5% on June 21, 2019, eliminating approximately $300 million of Sealed Air’s market capitalization.
On August 2, 2019, Sealed Air disclosed the following in a Form 10-Q filing:
The Company has received from the staff of the SEC subpoenas for documents and requests for information in connection with the SEC’s previously disclosed investigation. Those subpoenas and requests seek documents and information regarding the Company’s accounting for income taxes, its financial reporting and disclosures, the process by which the Company selected its independent audit firm beginning with fiscal year 2015, the independence of that audit firm, and other matters.
Following the announcement on June 20, 2019 that the Company had terminated the employment of William G. Stiehl as Chief Financial Officer, the Company received a Grand Jury subpoena from the United States Attorney’s Office for the Western District of North Carolina . . . seeking documents relating to that termination and relating to the process by which the Company selected its independent audit firm beginning with fiscal year 2015. [Emphasis added.]
If you purchased, or otherwise acquired, shares of Sealed Air and suffered losses, you are encouraged to complete the form on the right or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to discuss the securities investigation.
Kehoe Law Firm, P.C.
