NEW YORK, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Mattel, Inc. (“Mattel” or the “Company”) (NASDAQ:MAT) of the February 24, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Mattel stock or options between October 26, 2017 and August 8, 2019 and would like to discuss your legal rights, click here:www.faruqilaw.com/MAT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail torgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Mattel common stock between October 26, 2017 and August 8, 2019 (the “Class Period”). The case, Houston Municipal Employees Pension System v. Mattel, Inc. et al, No. 19-cv-10860 was filed on December 24, 2019, and has been assigned to Judge Andre Birotte Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose 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.
On August 1, 2019, Mattel announced that it would offer $250 million of Senior Notes due 2027 (the “Senior 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. The closing of the offering was expected to occur on August 8, 2019, subject to customary closing conditions.
Then, on August 8, 2019, Mattel announced that its outside auditor had received a whistleblower letter alleging certain improprieties in the company’s accounting practices—resulting in the sudden termination of Mattel’s scheduled Senior Note Offering.
On this news, Mattel’s stock fell from a closing price of $13.43 on August 8, 2019 to a closing price of $11.31 on August 9, 2019—a $2.12 or a 15.79% drop.
On October 29, 2019, the company reported the results of its investigation into the whistleblower allegations. Among other things, Mattel acknowledged that it had committed certain accounting errors and amended the Company’s 2018 Form 10-K to restate the last two quarters of 2017. Mattel also admitted to weaknesses in its internal controls and violations of auditor independence rules.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Mattel’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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