(NASDAQ GS: MAT)
Attention investors who purchased shares of Mattel, Inc. between October 26, 2017 and August 8, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Mattel, Inc. ("Mattel") concerning whether Mattel and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period October 26, 2017 and August 8, 2019, inclusive (the "Class Period"), concerning Mattel's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Mattel's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Mattel, Inc. (“Mattel” or the “Company”) (NASDAQ GS: MAT) between October 26, 2017 and August 8, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Mattel during the Class Period, or purchased shares prior to the Class Period and still hold Mattel, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at email@example.com, or at http://rigrodskylong.com/contact-us/.
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 wish to serve as lead plaintiff, you must move the Court no later than February 24, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed 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.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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