Morgan & Morgan Announces that a Class Action Lawsuit Has Been Filed Against JAKKS Pacific, Inc. (JAKK)
NEW YORK, July 29, 2013 /PRNewswire/ -- Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of JAKKS Pacific, Inc. ("JAKKS") (JAKK) common stock for the class period between February 21, 2013 and July 17, 2013 (the "Class Period").
If you purchased JAKKS between February 21, 2013 and July 17, 2013 you may, no later than September 23, 2013, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that JAKKS and certain of its officers and directors issued materially false and misleading statements about the Company's financial condition and prospects. On July 17, 2013, JAKKS announced its second quarter financial results, significantly missing the Company's previously issued guidance, which had been recently reaffirmed in April 2013. JAKKS' second quarter results included charges for license minimum guarantee shortfalls of $14.1 million and inventory impairment of $12.2 million. JAKKS noted that poor performance of several of the Company's key properties contributed to the shortfall. As a result, JAKKS revised 2013 guidance from earnings of $0.63- $0.68/share to a loss of $2.56/share. JAKKS also suspended its dividend. Following this news, shares of JAKKS fell 39% to close at $7.00 on July 18, 2013.
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