SEC Charges Tupperware Brands Corporation for Internal Controls and Books and Records Failures
Sept. 29, 2022
File No. 3-21180
September 29, 2022 - The Securities and Exchange Commission today charged consumer products company Tupperware Brands Corporation with failing to devise and maintain a sufficient system of internal accounting controls and with failing to maintain accurate books and records from at least 2016 through 2020. Tupperware has agreed to settle the charges and will pay a penalty of $900,000.
According to the SEC's order, Tupperware failed to fully integrate its House of Fuller Mexico ("Fuller Mexico") reporting unit after it acquired the business and implement appropriate policies and procedures. The order finds that Tupperware retained certain legacy policies and practices, failing to recognize the risk that these policies and practices may not adequately address that unit's direct sales model and, over time, lagging financial performance. As a result, Fuller Mexico's management was able to override controls and inaccurately record financial results from at least 2016 through 2020 by: improperly increasing sales via the shipment of unordered products without purchase orders; and improperly reserving for various other expenses at Fuller Mexico.
The order against Tupperware finds that it violated Section 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934. Without admitting or denying the SEC's findings, Tupperware agreed to cease and desist from committing or causing any violations and any future violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and to pay a civil monetary penalty of $900,000.
The SEC's investigation was conducted by Matthew J. Alexander, Andrea Fox, and Juan Migone, and supervised by Peter J. Rosario, Kevin Guerrero and Stacy L. Bogert.