Gold Bennett & Cera LLP Files Class Action Against Mattel, Inc. Relating To Its Merger With the Learning Company Alleging Violations Of Federal Securities Laws

Oct 19, 1999, 01:00 ET from Gold, Bennett & Cera LLP

    SAN FRANCISCO, Oct. 19 /PRNewswire/ -- Gold Bennett & Cera LLP has filed a
 class action in the United States District Court for the Central District of
 California, Case No. CV-99-10847, on behalf of all purchasers of Mattel, Inc.
 ("Mattel") common stock (NYSE:   MAT) during the period February 2, 1999 through
 October 1, 1999, inclusive (the "Class Period").  The plaintiff purchased
 shares of Mattel common stock during the Class Period and is seeking to
 recover damages.
     The plaintiff is represented by the San Francisco law firm of Gold Bennett
 & Cera LLP.  For over 30 years, Gold Bennett & Cera LLP and its predecessors
 have successfully engaged in commercial litigation, including shareholder,
 consumer and antitrust class actions, in federal and state courts throughout
 the United States, recovering hundreds of millions of dollars for its clients.
     This action arises out of an alleged fraudulent scheme by which The
 Learning Company ("TLC") was merged in Mattel (the "Merger").  The alleged
 scheme enabled defendants to obtain approval of the Merger between Mattel and
 TLC and to artificially inflate the stock price of Mattel.  The alleged scheme
 also enabled the two senior TLC executives to obtain in excess of $11 million
 from the sale of Mattel shares received in the Merger shortly after its
     The complaint charges that defendants materially misstated the pro forma
 revenues, net income and earnings per share of TLC (and Mattel after the
 Merger), made materially false or misleading statements that TLC was an
 excellent strategic fit with Mattel and that the Merger would be accretive to
 Mattel's 1999 results.  As a result of the defendants' alleged material
 misstatements and omissions, Mattel's common stock traded at artificially
 inflated prices throughout the Class Period, including as high as $30.3125 per
 share during the Merger pricing period in April and May 1999.  On
 October 4, 1999, Mattel disclosed that its TLC division would incur a
 $50-$100 million loss for the third quarter rather than an expected
 $50 million profit.  As a result, Mattel will not meet its forecast
 $1.50 earnings per share for 1999.  After disclosure of the problems at its
 TLC division, the price for Mattel's stock fell to $11 7/8 on October 4, 1999
 on volume of nearly 30 million shares.
     If you purchased Mattel common stock during the Class Period, you may no
 later than 60 days from October 7, 1999 move the Court to serve as lead
 plaintiff, if you so choose.  To serve as lead plaintiff, however, you must
 meet certain legal requirements.  If you wish to discuss this action or have
 any questions concerning this notice or your rights or interests, please
 contact Joseph M. Barton of Gold Bennett & Cera LLP, 595 Market Street, Suite
 2300, San Francisco, California 94105, by telephone at 800-778-1822 or
 415-777-2230, by facsimile at 415-777-5189 or by e-mail at

SOURCE Gold, Bennett & Cera LLP