Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed against Mattel, Inc. (“Mattel” or “Company”) (NASDAQ: MAT) and several officers and directors for acts taken during the period of October 20, 2016 and April 20, 2017 (the “Class Period”).
Based upon the allegations in the class action, the firm is investigating additional legal claims against the officers and Board of Directors of Mattel. If you are an affected Mattel shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at shareholders@thebriscoelawfirm.com or call toll free at (888) 809-2750. There is no cost or fee to you.
According to the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and/or failed to disclose adverse information regarding Mattel’s business and prospects during the Class Period. Specifically, the complaint alleges that defendants failed to disclose that Mattel’s retail customers were loaded with extremely high levels of unsold Mattel product, which exposed Mattel to the heightened risk, and that it would have to issue its retailers financial concessions to remove such excess inventory. The complaint alleges that Mattel also failed to disclose that it would experience slower sales growth in future periods. As a result of defendants’ false statements and/or omissions, Mattel shares traded at artificially inflated prices of more than $33 per share during the Class Period.
After the close of the market on April 20, 2017, Mattel announced its first quarter 2017 financial results, reporting 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% to $127.0 million from $49.1 million. Mattel’s first quarter 2017 results were significantly below Wall Street consensus estimates. In fact, Mattel’s 15% net sales decline during the quarter was twice the 7.8% decline expected by Wall Street analysts and its reported first quarter 2017 gross margins were 520 basis points less than expected Wall Street consensus estimates. Mattel stock dropped significantly immediately following this announcement.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
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