Apr 22, 2020 | Securities Class Action Archive
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.
Apr 21, 2020 | Consumer Protection, Employment & Technology Archive
Class Action Lawsuit Alleges “Dangerous Defect” Affecting Jeep Wrangler Rubicon (2007-2017); Jeep Wrangler Unlimited Rubicon (2007-2017); Jeep Wrangler Rubicon (2018-2020); Jeep Wrangler Unlimited Rubicon (2018-2020); Jeep Gladiator Rubicon (2020); Dodge Ram 2500 Power Wagon (2005-2010); Ram 2500 Power Wagon (2011-2020)
Kehoe Law Firm, P.C. is making consumers aware that on April 20, 2020, a class action lawsuit was filed against FCA US LLC (“FCA”) in United States District Court, Eastern District of Michigan, on behalf of individuals who purchased or leased the following vehicles sold with an electronic sway bar disconnect: Jeep Wrangler Rubicon (2007-2017); Jeep Wrangler Unlimited Rubicon (2007-2017); Jeep Wrangler Rubicon (2018-2020); Jeep Wrangler Unlimited Rubicon (2018-2020); Jeep Gladiator Rubicon (2020); Dodge Ram 2500 Power Wagon (2005-2010); and Ram 2500 Power Wagon (2011-2020).
According to the class action complaint:
. . . a sway bar (also called an “anti-roll bar” or “stabilizer bar”) is part of a car’s suspension system. It provides stability and helps prevent the car from leaning to one side when turning. Driving on streets or highways with a disconnected or malfunctioning sway bar is dangerous.”
For cars that are suitable for off-roading, like the Class Vehicles here, it is sometimes advantageous to temporarily disconnect the sway bar when driving in rough terrain. The Class Vehicles’ suspension systems include an electronic sway bar disconnect, which is intended to allow the driver to quickly disconnect and reconnect the sway bar with the push of a button on the dashboard.
The problem, however, is that the electronic sway bar disconnect has a dangerous defect, and thus poses a serious safety risk to drivers, occupants, and the general public (hereinafter, “the Sway Bar Defect”). Specifically, the electronic circuit board for the sway bar disconnect is in a housing with seals that are prone to failure and is located in an area that is likely to get wet or sprayed under ordinary or expected conditions, such as driving over puddles or in the rain. Failure of the circuit board occurs when liquid or contaminants breach a seal of the housing, resulting in a disconnected or malfunctioning sway bar. In some instances, the electronic sway bar disconnect will fail and not reconnect, forcing the driver to drive on roads and highways without a sway-bar. Driving on streets and highways with a disconnected or malfunctioning sway bar is dangerous.
FCA has known about this problem for years but has taken no action to fix it. Instead, FCA continues to sell the Class Vehicles as safe, reliable and fit for their ordinary purpose. Even worse, FCA also denies warranty coverage for the Sway Bar Defect. As a result, owners of the Class Vehicles have suffered damages, including, inter alia: (1) out-of-pocket expenses to repair or replace defective electronic sway bar disconnects; (2) costs for future repairs or replacements; (3) sale of their vehicle at a loss; and/or (4) diminished value of their vehicles. [Emphasis added.]
Purchasers or lessees of either a Jeep Wrangler Rubicon (2007-2017); Jeep Wrangler Unlimited Rubicon (2007-2017); Jeep Wrangler Rubicon (2018-2020); Jeep Wrangler Unlimited Rubicon (2018-2020); Jeep Gladiator Rubicon (2020); Dodge Ram 2500 Power Wagon (2005-2010); or Ram 2500 Power Wagon (2011-2020) are encouraged to contact Kehoe Law Firm, P.C. to discuss potential legal claims.
Apr 21, 2020 | Consumer Protection, Employment & Technology Archive
Low-Pressure Fuel Pump’s Failure Which Can Lead To Unexpected Stalling and Engine Shutdown Alleged In Class Action Lawsuit Against Toyota and Denso Corporation
Kehoe Law Firm, P.C. is making consumers aware that on April 20, 2020, a class action lawsuit was filed in United States District Court, Central District of California, against Toyota Motor Corporation, Toyota Motor North America, Inc., Toyota Motor Sales USA, Inc., Toyota Motor Engineering & Manufacturing North America, Inc. (collectively, “Toyota”), Denso Corporation, and Denso International America, Inc. (collectively, “Denso”).
695,541 Toyota and Lexus Vehicles With Denso Low-Pressure Fuel Pumps Recalled
In January 2020, Toyota, according to the class action complaint, voluntarily recalled 695,541 Toyota and Lexus vehicles which were “equipped with defective Denso low-pressure fuel pumps,” because “Toyota identified a dangerous defect in the low-pressure fuel pump which can fail and cause the vehicles identified in the [r]ecall to unexpectedly stall and suffer engine shut down[.]”
The complaint identified the vehicles affected by the recall as follows:
2018-2019 Toyota 4Runner, 2019 Toyota Avalon, 2018-2019 Toyota Camry, 2019 Toyota Corolla, 2018-2019 Toyota Highlander, 2018-2019 Toyota Land Cruiser, 2018-2019 Toyota Sequoia, 2018-2019 Toyota Sienna, 2018-2019 Toyota Tacoma, 2018-2019 Toyota Tundra, 2019 Lexus ES, 2018-2019 Lexus GS, 2018-2019 Lexus GX, 2018-2019 Lexus IS, 2018-2019 Lexus LC, 2018-2019 Lexus LS, 2018-2019 Lexus LX, 2019 Lexus NX, 2018-2019 Lexus RC, 2018-2019 Lexus RX.
Expanded Recall Of Additional 1,122,428 Toyota and Lexus Vehicles With Low-Pressure Fuel Pumps
In March 2020, Toyota, according to the complaint, “submitted an amended defect information report to NHTSA . . ., expanding the [r]ecall from 695,541 to 1,817,969 of its most popular Toyota and Lexus vehicles.[]” Toyota, according to the relevant defect information report, allegedly “states that the additional 1,122,428 vehicles have the same Fuel Pump Defect[.]”
The complaint identified the vehicles affected by the expanded recall as follows:
2014-2015 Toyota 4Runner, 2018-2019 Toyota Avalon, 2018-2019 Toyota Camry, 2018-2019 Toyota Corolla, 2014 Toyota FJ Cruiser, 2018-2019 Toyota Highlander, 2014-2015 Toyota Land Cruiser, 2018-2019 Toyota Sequoia, 2017-2019 Toyota Sienna, 2018-2019 Toyota Tacoma, 2018-2019 Toyota Tundra, 2018-2019 Lexus ES350, 2018-2019 Lexus GS300, 2013-2014 and 2018-2019 Lexus GS350, 2014-2015 Lexus GX460, 2014 Lexus IS-F, 2017 Lexus IS200t, 2018-2019 Lexus IS300, 2014-2015 and 2018-2019 Lexus IS350, 2018-2019 Lexus LC500, 2018-2019 Lexus LC500h (Hybrid), 2013-2015 Lexus LS460, 2018-2019 Lexus LS500, 2018-2019 Lexus LS500h (Hybrid), 2014-2015 Lexus LX570, 2015 Lexus NX200t, 2018-2019 Lexus RC300, 2017 Lexus RC200t, 2015 and 2018-2019 Lexus RC350, 2017-2019 Lexus RX350, and 2018-2019 Lexus RX350L.
According to the complaint:
The [r]ecall captures only a portion of 2013-2019 Toyota and Lexus vehicles equipped with Denso low-pressure fuel pumps and fuel pump assemblies that begin with part number prefixes 23220- and 23221-. However, the same dangerous condition is present in all 2013-2019 Toyota and Lexus vehicles equipped with Denso low-pressure fuel pumps and fuel pump assemblies that begin with part number prefixes 23220- and 23221- (“Class Vehicles”). For example, Toyota submitted [a third defect information report] to [the] NHTSA in order to add another 42,300 Lexus vehicles equipped with Denso low-pressure fuel pumps and fuel pump assemblies that begin with part number prefixes 23220- and 23221- to the [r]ecall. [Emphasis added.]
The third defect information report, according to the complaint, “expanded the number of Lexus GS vehicles subject to the [r]ecall to include 2018-19 Lexus GS300 vehicles produced from October 13, 2017 through January 18, 2019, and 2013-2015 and 2018-2019 Lexus GS350 vehicles produced from September 2, 2013 through February 21, 2015 and from October 3, 2017 through January 31, 2019.”
Allegedly, the fuel pump defect in the subject “Class Vehicles,” is an issue which
exposes occupants and others to extreme danger, or even death. A vehicle that stalls or suffers engine shutdown is at heightened risk for collision. A vehicle that stalls or suffers engine shutdown causes drivers to react to remove themselves from danger, typically by exiting the road. Drivers stranded on the side of the road experience a heightened risk of danger, whether it is from other vehicles, remoteness or weather elements. [Emphasis added.]
Apr 20, 2020 | Whistleblower
Whistleblower’s Significant Information Leads To Successful Enforcement Action And $5 Million Award
Kehoe Law Firm, P.C. is making individuals aware that on April 20, 2020, the SEC announced a $5 million award to a whistleblower who provided significant information that led to a successful enforcement action. The whistleblower provided critical evidence of wrongdoing, which helped save time and resources in the SEC’s investigation, and the whistleblower suffered a unique hardship as a result of raising concerns internally.
The SEC has awarded approximately $430 million to 80 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
Source: U.S. Securities and Exchange Commission – SEC.gov
Apr 17, 2020 | Securities Class Action Archive
Purchasers of iQIYI American Depositary Shares (“ADS”) Between March 29, 2018 and April 7, 2020 Are Encouraged To Contact Kehoe Law Firm, P.C. To Discuss Potential Legal Claims – Class Action Filed On Behalf of iQIYI ADS Purchasers
Kehoe Law Firm, P.C. is making consumers aware that a class action lawsuit has been filed against iQIYI, Inc. (“iQIYI” or the “Company”) (NASDAQ: IQ) in United States District Court, Eastern District of New York, on behalf of individuals or entities who purchased, or otherwise acquired, iQIYI’s securities between March 29, 2018 and April 7, 2020, both dates inclusive (the “Class Period”). The class action is seeking to recover compensable damages caused by the iQIYI Defendants’ alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5, promulgated thereunder.
According to the class action complaint, the iQIYI Defendants issued materially false and/or misleading, because they misrepresented and failed to disclose adverse facts pertaining to the Company’s business, operational and financial results, which were known to Defendants or recklessly disregarded by them. Specifically, the iQIYI Defendants made false and/or misleading statements and/or failed to disclose that: (1) iQIYI inflated its revenue figures; (2) iQIYI inflated its user numbers; (3) iQIYI inflated its expenses to cover up other fraud; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Investors who purchased, or otherwise acquired, IQ American Depositary Shares during the Class Period and suffered losses 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 class action lawsuit or potential legal claims.
