Specifically, the class action complaint alleges that Defendants falsely stated that Spectrum was successfully executing two major supply-chain consolidation projects in its Global Auto Care (“GAC”) and Hardware and Home Improvement (“HHI”) divisions, when in fact the GAC and HHI consolidations were suffering from fundamental logistical, operational, and technical problems that were far more serious than those disclosed to investors. The class action complaint further alleges that the prices of Spectrum’s common stock were artificially inflated during the Class Period as a result of Defendants’ allegedly false and misleading statements, and the stock price declined when the truth was revealed. 

Unlike a class action, brought on behalf of damaged investors, a shareholder derivative action is an action brought by a shareholder of a public company on behalf of and for the benefit of the company itself against the directors and/or officers of that company. In a derivative action, shareholders “step into the shoes” of the directors and officers of a company and bring litigation that the board would be unwilling to pursue on its own.

Current Spectrum Brands shareholders who have held shares of the Company’s stock since January 26, 2017, can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.