Shareholder Class Action Filed Against Mattel, Inc. - MAT
RADNOR, Pa., July 6, 2017 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Mattel, Inc. (NASDAQ: MAT) ("Mattel" or the "Company") on behalf of purchasers of the Company's securities between October 20, 2016 and April 20, 2017, inclusive (the "Class Period").
Investors who purchased Mattel securities during the Class Period may, no later than August 28, 2017, seek to be appointed as a lead plaintiff representative of the class.For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/mattel-inc#join
Mattel shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at info@ktmc.com.
Mattel designs, manufactures, and markets a broad variety of children's toy products on a worldwide basis.The majority of Mattel's products are sold to a relatively small retail customer base, and the Company's business is highly seasonal in nature.
The shareholder class action complaint alleges that Mattel and certain of its senior executive officers made a series of false and misleading statements to investors about the Company's business, operations, and financial prospects.Among other things, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: (i) prior to and during the Class Period, Mattel's retail customers were loaded with extremely high levels of unsold Mattel product; and (ii) as a result of Mattel's unusually high levels of unsold inventory at its retailers, 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 further detailed in the complaint, on January 25, 2017, Mattel reported its Fourth Quarter and Full Year 2016 financial and operational results for the period ending December 31, 2016.Therein, Mattel reported that, on a year-over-year basis, worldwide net sales had declined by 8%, gross margins had declined by 14%, and operating income had declined by 11%.Also on January 25, 2017, Mattel's Chief Executive Officer ("CEO") disclosed that the Company's gross margins had been "significantly impacted by elevated sales adjustments and by heavier discounting."
Following this news, shares of Mattel's common stock declined $5.57 per share, or over 17.5%, to close on January 26, 2017 at $25.99 per share, on heavy trading volume.
Then, on April 20, 2017, Mattel reported its First Quarter 2017 financial and operational results for the period ended March 31, 2017.As detailed in the complaint, those quarterly results were significantly less than Wall Street securities analysts' consensus estimates due to a "retail inventory overhang coming out of the holiday period."Additionally, Mattel's newly appointed CEO disclosed that retail inventory levels during the quarter were such that they had a "prolonged impact" on customer orders.
Following this news, shares of Mattel's common stock declined an additional $3.42 per share, or over 13.5%, to close on April 21, 2017 at $21.79 per share, again on heavy trading volume.
Mattel shareholders may, no later than August 28, 2017, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member.A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation.In order to be appointed as a 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 in the action.Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country.Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers.The complaint in this action was not filed by Kessler Topaz Meltzer & Check.For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706
(610) 667-7706
info@ktmc.com
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SOURCEKessler Topaz Meltzer & Check, LLP
