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Mattel, Inc.

A class action lawsuit has been filed in the United States District Court for the Central District of California against Mattel, Inc. ("Mattel") (NASDAQ:MAT), behalf of a class consisting of investors who purchased or otherwise acquired Mattel securities during the period from October 20, 2016 through April 20, 2017 (the "Class Period"). The lawsuit charges Mattel and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

Mattel is a multi-national toy manufacturing company. The lawsuit alleges that during the Class Period, defendants failed to disclose adverse information regarding Mattel's business and prospects, including that prior to and during the Class Period, Mattel's retail customers were loaded with extremely high levels of unsold Mattel product and, as a consequence, Mattel was exposed to the heightened risk that it would have to issue its retailers financial concessions (in the form of sales adjustments, discounts and promotions) to remove such excess inventory, as well as the heightened risk that Mattel 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.

On April 20, 2017, after the close of the market, 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. In response to these revelations, the price of Mattel stock fell from $25.21 to $21.79 per share on April 21, 2017, damaging investors.

If you acquired Mattel securities during the Class Period, you may, no later than August 28, 2017, request that the court appoint you lead plaintiff of the proposed class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.

If you are a current or former Mattel shareholder and wish to obtain additional information, please fill out the contact form at the link below.

Investigation Contact Form

Mattel, Inc. Contact Form


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