What I think happens is that the foam changes the nature of the acoustic wave traveling through it. Obviously the acoustic wave actually travels though the foam twice, once through the foam to the wall then back out again to the air. So any effect the foam has on the acoustic wave is doubled. As I intimated earlier ANY foam in the room has a similar deleterious effect on the sound, for example the IKEA Poang Chair that has foam seats and backing.
At least Geoff is "thinking" :)
The one thing Geoff doesn’t mention, *even IF his post is true* is whether or not the "deleterious effect" is worse without (correctly placed and designed) acoustic foam!
EDIT:
Besides the fact that there are numerous manufacturers of acoustic foam, and customers who report improvement in sound when using foam, this article is rather succinct and informative as to its potential benefit(s).
https://en.wikipedia.org/wiki/Acoustic_foam