Mattel investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Mattel is an international toy manufacturing company, which claims to be the owner of one of the strongest portfolios of toy brands with vast intellectual property potential. In addition, it is a company which supposedly focuses on “unwavering integrity” with “solid standards of corporate governance.”
The Class Period commences on August 2, 2017, when Mattel filed a quarterly report on a Form 10-Q with the SEC announcing Mattel’s financial and operating results for the quarter ended June 30, 2017.
According to the complaint, on August 1, 2019, Mattel announced that it would offer $250 million of Senior Notes due 2027 (the “Note Offering”). Mattel said that it would use the net proceeds from the sale of the Notes, plus cash on hand, to redeem and retire all of its 4.350% Senior Notes which would be due in 2020 and pay related prepayment premiums and transaction fees and expenses. The closing of the offering was expected to occur on August 8, 2019, subject to customary closing conditions.
Then, on August 8, 2019 - the very day the Note Offering was expected to close - Mattel announced that a whistleblower letter had been sent to its outside auditors alleging accounting errors in past quarters and questioned whether Mattel’s outside auditor was sufficiently independent. As a result, Mattel announced that it was terminating the Note Offering subject to the results of an internal investigation. Following this news, Mattel’s common stock dropped $2.12 per share, or almost 12%.
On October 29, 2019, Mattel announced the conclusion of its investigation into the whistleblower’s claims, and that Joseph J. Euteneuer (“Euteneuer”), Mattel’s Chief Financial Officer, would depart the company. According to Mattel, 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 then Chief Executive Officer, Margaret Georgiadis, and Mattel’s Audit Committee once they became known.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Mattel’s third quarter 2017 net loss of $603.3 million was understated by $109 million due to an inappropriate calculation of its tax valuation allowance; (2) Mattel lacked adequate systems of internal disclosure and financial controls; and (3) the accounting change for intangible assets in Mattel’s fourth quarter and full year 2017 report was a surreptitious attempt to correct the third quarter 2017 misstatement of its net loss, a change that artificially increased the fourth quarter 2017 net loss by $109 million.
If you are a member of the class described above, you may no later than February 24, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
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