Kehoe Law Firm, P.C. Investigating Mattel, Inc. For Potential Breach of Fiduciary Duty Claims
Kehoe Law Firm, P.C. is investigating Mattel, Inc. (“Mattel” or the “Company”) (NASDAQ: MAT) for potential breach of fiduciary duty claims. On April 9, 2020, a shareholder derivative action was filed in United States District Court for the District of Delaware seeking to remedy wrongdoing allegedly committed by Mattel’s directors and officers from August 2, 2017 through August 8, 2019 (the “Relevant Period”).
According to the complaint:
During the Relevant Period, the Individual Defendants breached their fiduciary duties by causing the Company to engage in improper accounting practices, and by personally making and/or causing the Company to make a series of materially false and/or misleading statements regarding the Company’s business, operations, prospects, and regulatory compliance. Specifically, the Individual Defendants willfully or recklessly made and/or caused the Company to make false and misleading statements that failed to disclose that: (1) Mattel did not maintain effective internal controls over financial reporting; (2) the Company’s net loss during the third fiscal quarter of 2017 was understated by $109 million; (3) the Company’s senior accounting team conspired with PwC to cover up this understatement by overstating the Company’s net loss during the fourth fiscal quarter of 2017 by $109 million; and (4) as a result of these misstatements, the Company’s financial statements were inaccurate and were not in compliance with GAAP. As a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times and the Company would ultimately be forced to cancel its $250 million Notes Offering and restate certain of its financial statements. [Emphasis added.]
Have You Owned Mattel Shares Continuously Since August 2017?
Mattel investors who have owned MAT shares continuously since August 2017 are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss the Mattel investigation or potential legal claims.