NEW YORK, June 28, 2017 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Mattel, Inc. ("Mattel" or the "Company") (NASDAQ: MAT) and certain of its officers, on behalf of shareholders who purchased Mattel securities between October 20, 2016 and April 20, 2017, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/mat.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, Defendants made false and misleading statements and/or failed to disclose adverse information regarding Mattel's business and prospects, including that prior to and during the Class Period, Mattel's retail customers were loaded with very high levels of unsold Mattel product and consequently, Mattel was exposed to the increased risk that it would have to issue its retailers financial concessions (in the form of sales adjustments, discounts and promotions) to remove such surplus inventory, and the increased risk that Mattel would experience slower sales growth in upcoming periods. The complaint alleges that due to defendants' false statements and/or omissions, Mattel stock traded at artificially manipulated prices of over $33 per share during the Class Period.
On April 20, 2017, after-market hours, Mattel revealed its first quarter 2017 financial results, and reported that on a year-over-year basis its worldwide net sales and gross margins each dropped over 15%, and its operating loss grew more than 158% to $127.0 million from $49.1 million. Mattel's first quarter 2017 results were considerably lower than Wall Street projections and the Company's 15% net sales drop during the quarter was twice the 7.8% drop estimated by Wall Street analysts, and its reported first quarter 2017 gross margins were 520 basis points lower than expected Wall Street estimates. Following these revelations, Mattel stock dropped roughly 14%, or $3.42 per share, on heavy trading volume to close at $21.79 per share on April 21, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/mat or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Mattel you have until August 28, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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