| Item 8.01. | Other Information |
As previously disclosed in periodic filings with the U.S. Securities and Exchange Commission (the “SEC”) by Newell Brands Inc. (the “Company”), certain of the Company’s current and former officers and directors have been named in various shareholder derivative lawsuits which allege, among other things, violations of the federal securities laws, breaches of fiduciary duties, unjust enrichment, and waste of corporate assets. On October 29, 2018, a shareholder filed a putative derivative complaint, Streicher v. Polk, et al., in the United States District Court for the District of Delaware (the “Streicher Derivative Action”), purportedly on behalf of the Company against certain of the Company’s current and former officers and directors. On October 30, 2018, another shareholder filed a putative derivative complaint, Martindale v. Polk, et al., in the United States District Court for the District of Delaware (the “Martindale Derivative Action”), asserting substantially similar claims purportedly on behalf of the Company against the same defendants. The Streicher Derivative Action and the Martindale Derivative Action were consolidated into a case captioned In re Newell Brands Inc. Derivative Litigation (the “Newell Brands Derivative Action”) in the United States District Court for the District of Delaware. On December 30, 2020, two shareholders filed a putative derivative complaint, Weber, et al. v. Polk, et al., in the United States District Court for the District of Delaware (the “Weber Derivative Action”), purportedly on behalf of the Company against certain of the Company’s current and former officers and directors. On January 31, 2023, Ms. Streicher voluntarily dismissed herself from the Newell Brands Derivative Action, although Mr. Martindale remained a plaintiff in that suit.
On May 26, 2023, Ms. Streicher filed a putative derivative complaint against the Company (as nominal defendant) and certain current and former Company officers and directors in the Superior Court of New Jersey, Law Division: Hudson County (the “Court”), docket number HUD-L-001853-23 (the “New Jersey Derivative Action” and, collectively with the Newell Brands Derivative Action and the Weber Derivative Action, the “Derivative Litigation”). On June 7, 2023, Ms. Streicher filed a Stipulation of Settlement (the “Stipulation”) with the Court, which included all of the following individual defendants in the Derivative Litigation: Michael B. Polk, John K. Stipancich, Scott H. Garber, Bradford R. Turner, Michael T. Cowhig, Thomas E. Clark, Kevin C. Conroy, Scott S. Cowen, Domenico De Sole, Cynthia A. Montgomery, Christopher D. O’Leary, Jose Ignacio Perez-Lizaur, Michael A. Todman, Raymond G. Viault, Martin E. Franklin, Ian G. H. Ashken, Ros L’Esperance, James L. Cunningham III, Patrick D. Campbell, Bridget Ryan Berman, James R. Craigie, Brett M. Icahn, Jay L. Johnson, Gerardo I. Lopez, Courtney R. Mather, Ravi Saligram, Judith A. Sprieser, Robert A. Steele, and Steven J. Strobel (collectively, the “Settling Defendants”).
On June 27, 2023, the Court issued an order preliminarily approving the proposed settlement as set forth in the Stipulation, which, among other things, provides for a full release of the claims that the plaintiffs or any other Company stockholder asserted or could have asserted in the Derivative Litigation against any of the Settling Defendants in exchange for the Company’s agreement to implement and/or maintain certain corporate governance measures, as more fully described in the Stipulation (the “Settlement”).
The Settlement is subject to final consideration at a hearing to be held on August 25, 2023 at 9:00 am, either remotely via Zoom or in person, and if in person, at the William J. Brennan Jr. Courthouse, 583 Newark Avenue, Jersey City, NJ 07306. The Settlement, if finally approved, will cause the dismissal with prejudice of the Derivative Litigation.
Pursuant to the Court’s order granting preliminary approval of the Settlement, the Company is filing the Stipulation and the Notice of Proposed Settlement of Derivative Action (the “Notice”), copies of which are attached hereto as Exhibits 99.1 and 99.2, respectively, with the SEC.
Additional information regarding the terms of the Stipulation can be found in the Stipulation and the Notice. The summary above is qualified in its entirety by reference to the Stipulation and the Notice.
