SAN FRANCISCO, June 30, 2017 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP alerts investors in Mattel, Inc. (NASDAQ: MAT) to the securities class action pending in the United States District Court for the Central District of California and the August 28, 2017 Lead Plaintiff deadline.
If you purchased or otherwise acquired securities of Mattel between October 20, 2016 and April 20, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing MAT@hbsslaw.com.
In a press release on October 20, 2016, Defendants announced Mattel's financial results for the quarter ended September 30, 2016. Mattel reported gross sales of $1.98 billion, in line with the prior year period, and operating income of $317.4 million, about 6% better than the prior year period. This news drove the price of Mattel shares up $1.84 or approximately 6% to close at $32.46 that day.
During the analyst conference call later that evening, Defendants reiterated they were broadly on track to deliver on the Company's full year outlook. Defendants also stated that product shipping during the quarter was "better aligned" with positive retail sales, which would position the Company well to execute in the fourth quarter.
On January 25, 2017, Defendants issued a press release announcing Mattel's 2016 fourth quarter and year-end financial results. For the fourth quarter, Mattel reported that compared to the prior year period, its worldwide net sales fell 8%, its gross margins fell 14% and its operating income fell 11%. Later that day, during a conference call with analysts and investors, Defendants partially attributed the disappointing results to elevated sales adjustments and heavier discounting to liquidate excess inventory in the retail channel.
This news drove the price of Mattel shares down $5.57 per share, or about 18%, to close at $25.99 on January 26, 2017.
On April 20, 2017 after the market closed, Defendants issued a press release announcing Mattel's financial results for the quarter-ended March 31, 2017. Compared to the prior year period, worldwide net sales and gross margins each declined over 15% and Mattel's operating loss increased over 158%. Later that day, during a conference call with analysts and investors, Defendants again partially attributed the disappointing results to the retail inventory overhang and the resulting slower pace of reorders by retailers, with sales in North America and Europe particularly impacted.
This news drove the price of Mattel shares down $3.42, or nearly 14%, to close at $21.79 on April 21, 2017.
"Among other things we're focused on is whether, leading into Mattel's 2016 fourth quarter, the Company engaged in channel stuffing or pulled in sales from future periods without making proper disclosures to investors," said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Mattel should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email MAT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000
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SOURCE Hagens Berman Sobol Shapiro LLP