Leaders are calling for an investigation into warehouse sales ahead of Canton factory closure announcement
MARCH 9, 2023 – Rep. Chuck Edwards (NC-11) released a letter Thursday, March 9, urging the United States Securities and Exchange Commission to halt the sale of shares by four Pactiv Evergreen executives just days before the Company to officially investigate announcement on Monday , March 6 that the hundred-year-old Canton paper mill will close by the summer. (Image credit: WLOS staff)
CANTON, NC (WLOS) —
On Thursday, March 9, Congressman Chuck Edwards announced that his office is asking the Securities and Exchange Commission to investigate the case Sale of shares by four Pactiv Evergreen executives just days before on the company’s announcement that the more than 100-year-old Canton paper mill will be closed by the summer.
According to SEC documents filed on Monday, March 6th, Pactiv Evergreen’s President and CEO posted earnings of more than $509,000. Other executives also made a lot of money.
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Edwards’ full letter to the Chairman of the US SEC can be found here with this link and at the end of this story.
The way the stock sale went down doesn’t sit well with evergreen workers and their families, nor with Canton Mayor Zeb Smathers, who expresses his frustration.
PACTIV EVERGREEN PLANT MANAGEMENT SHARES SOLD JUST BEFORE PLANT CLOSURE NEWS, SHOW DOCUMENTS
Leaders are calling for an investigation into warehouse sales ahead of Canton factory closure announcement
On Thursday, Smathers told News 13 that it was not only disrespectful but cowardly for Pactiv Evergreen’s top executives to cash in their shares before the plant closure was announced.
“It’s disgusting. Once again we have to deal with the devastation while others cash out. There’s anger here…it’s morally reprehensible and cowardly,” Smathers said.
“Whether it’s legal or illegal, it’s wrong,” Smathers said, “and anyone who’s listening knows it’s wrong.”
Smathers said he hears daily from hard-working mill families struggling to understand the actions of the company’s top executives.
“I’ve made hundreds of thousands of dollars while making crying men and women and children cry because they don’t know if they need to move to find a job,” he said. “We asked to look at all the incentives. If they followed through, great. But if they didn’t keep their end of the bargain, I want that money back, and I want it back for this state’s taxpayers — and especially for Haywood County.
MARCH 9, 2023 – Rep. Chuck Edwards (NC-11) released a letter Thursday, March 9, urging the United States Securities and Exchange Commission to halt the sale of shares by four Pactiv Evergreen executives just days before the Company to officially investigate announcement on Monday , March 6 that the hundred-year-old Canton paper mill will close by the summer. Pictured: Canton Mayor Zeb Smathers. (Image credit: WLOS staff)
As that unfolds, Western Carolina University economics professor Sean Mulholland said aging assets like Evergreen’s Canton asset are often a business decision.
“Eventually, certain plants, particularly old ones, will not be as viable as they were before,” Mulholland said.
CANTON PAPER MILL CLOSES, WORKFORCE REDUCED AT WAYNESVILLE MILL
However, while the plant is in place, another company with the skills available might see an opportunity and consider the benefit of remodeling the plant into smaller parts.
We will see. But for now, Smathers said Canton will keep fighting.
“Canton will survive. This is not the end of a city. This is a change of sides – and we’re already beginning the next chapter of our comeback story,” said Smathers.
Pactiv Evergreen sent out a statement on the stock sell-offs late Thursday afternoon.
This statement reads:
“The sales reported in our SEC filings Monday were sales that were automatically made/planned in advance by the company … to cover statutory withholding taxes and were not discretionary sales made by executives.” “
The full letter from Rep. Chuck Edwards addressed to SEC Chairman Gary Gensler reads as follows:
“Dear Chairman Gensler,
I am writing this letter in response to disturbing actions being taken by leaders at Pactiv Evergreen. I urge you to open an investigation into possible actions by these executives that may have violated federal law.
On the evening of March 6, 2023, employees at the Pactiv Evergreen paper mill in Canton, NC were notified that the mill would soon be closing. The Pactiv Evergreen paper mill is a major employer in the area and the closure of the mill will affect around 1,200 employees.
Just days before announcing the plant’s closure, several Pactiv Evergreen executives reportedly sold thousands of shares in the company at a price of $11.30 per share. After the plant’s closure was officially announced, Pactiv Evergreen’s stock price plummeted to $9.73 per share, allowing these executives to reap thousands of dollars.
It would be illegal for anyone to profit from inside information, and it would be reprehensible to reap a stroke of luck when the workers in my district will soon be struggling even more to provide for their families. I urge you to investigate these actions as insider trading.
Will you commit to investigating potential insider trading by Pactiv Evergreen executives? If yes, please confirm and if no, please explain why not. Please respond by March 23, 2023. If you have any questions, please contact Ryan Dierker at (202) 225-6401.”
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