The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Mattel, Inc. (“Mattel” or the “Company”) (NASDAQ: MAT) securities during the period from October 26, 2017 through August 8, 2019 (the “Class Period”). Investors have until February 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company misled investors regarding its financial accounting in the last two quarters of 2017, as well as the efficacy of its internal controls.
On August 1, 2019, Mattel announced that it would offer $250 million of Senior Notes due 2027 (the “Note Offering”). On August 8, 2019, Mattel announced that its outside auditor had received a whistleblower letter alleging certain improprieties in the Company’s accounting practices resulting in the sudden termination of the Note Offering on the very day it was expected to close. On this news, the price of Mattel shares fell $2.12, or 15.8%, to close at $11.31 per share on August 9, 2019.
On October 29, 2019, Mattel announced that it had concluded its investigation into the whistleblower’s claims, and that the Company’s CFO Joseph J. Euteneuer would depart the Company. According to the Company, the investigation found, among other things, “errors” in Mattel’s publicly filed financial statements for the last two quarters of 2017, and that these “errors” were not properly disclosed to the then CEO and the Company’s Audit Committee once they became known.
If you acquired Mattel securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.