NEW YORK, NY / ACCESSWIRE / July 28, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against Mattel, Inc. ("Mattel" or the "Company") (MAT) and certain of its officers. The class action, filed in United States District Court, Central District of California, Western Division, and docketed under 17-cv-04953, is on behalf of a class consisting of investors who purchased or otherwise acquired Mattel securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Mattel securities between October 20, 2016, and April 20, 2017, both dates inclusive, you have until August 26, 2017, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Mattel, Inc. designs, manufactures and markets a broad variety of children's toy products on a worldwide basis. The Company sells its products to retailers and directly to consumers. Mattel's products include branded fashion dolls, infant and preschool products, toy cars, and electric vehicles.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or 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; (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; and (iii) as a result of the foregoing, Mattel's public statements were materially false and misleading at all relevant times.
On April 20, 2017, post-market, Mattel issued a press release announcing its Q1 2017 financial results for the period ending March 31, 2017. For the quarter, the Company reported 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.