Kehoe Law Firm, P.C. is investigating whether certain executive officers and directors of Hasbro, Inc. (“Hasbro” or the “Company”) (NASDAQ: HAS) failed to manage Hasbro in an acceptable manner, in breach of their fiduciary duties to Hasbro and whether the Company and its shareholders were harmed as a result.
On February 5, 2025, a shareholder derivative complaint was filed against certain officers and directors of Hasbro, Inc. seeking to remedy their alleged violations of federal law and breaches of fiduciary duty which occurred between at least February 7, 2022 and October 25, 2023 (the “Relevant Period”).
Allegedly, Hasbro, a multinational toy and entertainment company, experienced a surge in demand for its products during the COVID-19 pandemic due to lockdowns and stay-at-home orders, leading to excess inventory.
The company accumulated this inventory to meet anticipated demand, but contrary to repeated statements by company management, its inventories were not of “good quality” and far exceeded customer demand.
On January 26, 2023, the Company reported disappointing Q4 2022 results and announced a 15% global workforce reduction, causing its stock to drop by 8.1%. Despite this, the Company’s stock remained artificially inflated because the individual defendants, allegedly, continued to obscure the truth.
The full truth emerged on October 26, 2023, when Hasbro revealed poor Q3 2023 results, lowered full-year revenue guidance, and disclosed costs associated with managing inventory. This led to an 11.7% drop in stock price.
Long-Term Hasbro Shareholders: Know Your Rights and Legal Options
To learn more about the shareholder derivative action or discuss potential legal claims, please send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation.
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. Collectively, the firm’s partners have served as Lead Counsel or Co-Lead Counsel in high-profile cases that have recovered more than $10 billion for both institutional and individual investors.
Our class action legal services are on a contingency-fee basis, meaning you are not responsible for any fees or litigation expenses.
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