Mattel, Inc. (MAT) Accused of Inflating Stock Price

According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between February 7, 2019 and February 15, 2019, Mattel, Inc. (MAT) announced its fourth quarter and full year 2018 results and highlighted the growth of Barbie and Hot Wheels on February 7, 2019. A little over a week later, Mattel provided a disappointing outlook for 2019. Mattel’s Chief Financial Officer, Joseph Euteneuer, revealed slowing growth in sales of Barbie and Hot Wheels. Mattel failed to disclose that demand for its products were declining, and that it had an excess of product supply. On this news, Mattel’s shares fell more than 18% to close at $13.82, and has yet to recover.