Robbins LLP: Mattel, Inc. (MAT) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Mattel, Inc. (NasdaqGS: MAT). The complaint is brought on behalf of all purchasers of Mattel securities between October 20, 2016 and April 20, 2017, for alleged violations of the Securities Exchange Act of 1934 by Mattel’s officers and directors. Mattel designs, manufactures, and markets a range of toy products worldwide.
Mattel Accused of Misleading Investors About Its Financial Condition
According to the complaint, Mattel officials expressed confidence in the company’s ability to drive “sustainable, profitable growth” and on “building value for shareholders.” However, Mattel hid from investors that it was experiencing prolonged, adverse financial effects from unsold retailer inventory and that Q1 2017 North American and European sales were particularly experiencing sales shortfalls. On January 25, 2017, Mattel stated in a conference call that gross margins were adversely affected due to elevated sales adjustments, causing the company’s stock price to decline approximately 18% and close at $25.99 per share on January 26, 2017. Then, on April 20, 2017, Mattel reported that, on a year-over-year basis, worldwide net sales and gross margins each declined by more than 15%, and its operating loss increased by more than 158%, from $49.1 to $127 million. In a subsequent conference call with securities analysts and investors, Mattel admitted that the company did not expect “the prolonged impact from the retail inventory overhang and the resulting slower pace of reorders by retailers.” On this news, Mattel’s stock fell nearly 14%, or $3.42 per share, to close at $21.79 per share on April 21, 2017.
Mattel Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.