RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Mattel, Inc. ("Mattel" or the "Company") (NASDAQ: MAT) securities during the period from October 26, 2017 through August 8, 2019 (the "Class Period").
Mattel shareholders may, no later than February 24, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Mattel and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Mattel had inadequate systems of internal disclosure and financial controls; (2) Mattel would need to amend its 2018 annual report on Form 10-K to restate the Company's financial results for the third and fourth quarters of 2017; and (3) as a result of the foregoing, defendants' statements about its business and operations were materially false and misleading at all relevant times. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on August 1, 2019, Mattel announced that it would offer $250 million of Senior Notes due 2027 (the "Note Offering"). The Company said that it would use the net proceeds from the sale of the Notes, plus cash on hand, to redeem and retire all of its 4.350% Senior Notes which would be due in 2020 and pay related prepayment premiums and transaction fees and expenses.
Then, on August 8, 2019 - the very day the Note Offering was expected to close - Mattel shocked investors when it announced that a whistleblower letter had been sent to the Company's outside auditors alleging accounting errors in past quarters and questioned whether Mattel's outside auditor was sufficiently independent. As a result, the Company announced that it was terminating the Senior Note Offering subject to the results of an internal investigation.
On this news, shares of Mattel fell over 15%, closing at $11.31 per share on August 9, 2019, on heavy trading volume.
If you are a member of the class, you may, no later than February 24, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.