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Tupperware In Settlement Talks With SEC Over Accounting Misstatements
We first warned investors the company’s auditor blessed its financials prior to a $3.1 million earnings restatement.
June 15, 2022
Fifteen months ago, we detailed how Tupperware Brands(TUP), maker of food preparation, storage, and serving containers, was blaming its accounting trouble on rogue employees in Mexico. Tupperware said managers at its Mexico plant overrode the company’s internal controls over financial reporting, which explained why PwC blessed the companies controls the same year the financials were misstated.

The control deficiency resulted in Tupperware overstating pre-tax income by $3.1 million, or 1.46%. In reality, the trouble extended far beyond the Mexico plant as Tupperware’s new management seemingly delivered a kitchen sink annual report. In all, Tupperware’s 2021 annual report includes at least $362.7 million in restatements, adjustments, charges, and allowances.

In a recent 8-K updating these disclosures, Tupperware revealed:

“...the Company has commenced discussions with the SEC regarding a possible settlement of this matter.”

The company did not quantify the penalty it expects to pay but said it plans to recognize an estimated liability for the matter as of June 25, 2022. The company sold the Mexico plant during the second quarter of 2022.

Even with the kitchen sink filing, we warned against being long Tupperware as the stock had risen 2,000% in a year. Since then (March 18, 2021) shares have plunged 75.2%.
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