SEC Charges Newell Brands and Former CEO Michael Polk with Misleading Investors

SEC Charges Newell Brands and Former CEO Michael Polk with Misleading Investors

The Securities and Exchange Commission today charged Newell Brands Inc. and its former CEO, Michael Polk, with misleading investors about the company’s core sales growth. According to the SEC's order, Newell manipulated their publicly disclosed core sales growth in a way that was not consistent with Generally Accepted Accounting Principles (GAAP). This gave the false impression of strong or solid results in quarters where internally sales had fallen short. As a result, Newell and Polk agreed to settle the SEC charges by ceasing and desisting from committing further violations of the securities laws and paying civil penalties amounting to $12.5 million and $110,000 respectively. The SEC's investigation was conducted by its Division of Enforcement under the supervision of relevant staff members.