NEW YORK–(BUSINESS WIRE)–#MAT–Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against Mattel, Inc. (NASDAQ: MAT) on behalf of Mattel stockholders. Our investigation concerns whether Mattel has violated the federal securities laws and/or engaged in other unlawful business practices.
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On August 8, 2019, Mattel announced that a whistleblower letter had been sent to the Company’s outside auditors, alleging improprieties in certain accounting practices. As a result, Mattel abruptly terminate a Senior Note offering – which was scheduled to close that very same day. No details were given at the time, but the Company said that it would investigate the whistleblower’s allegations. The abrupt termination of the offering shocked the markets, with Mattel’s common stock dropping $2.12 per share or almost 12% on August 9, 2019.
On October 29, 2019, Mattel admitted to improper accounting and stated investors should no longer rely on previously issued financial statements for the three and nine months ended September 30, 2017 and for the three months ended December 31, 2017, which are included in the Company’s annual report for the year ended December 31, 2017.
That same day, the Company disclosed the abrupt departure of its Chief Financial Officer Joseph J. Euteneuer.
Finally, on Nov. 6, 2019, The Wall Street Journal reported that the Company’s finance team uncovered an accounting error in early 2018 whose effect was to reduce Mattel’s loss for 3Q 2017. Brett Whitaker, who was Mattel’s director of tax reporting at the time, reportedly said Mattel’s finance team discussed fixing the problem and restating earnings but instead they and PricewaterhouseCoopers decided to bury the problem. According to Mr. Whitaker, “[m]y team was dumbfounded by it” and a PwC tax partner was “walking down the hall, high-fiving people, after this decision was made.”
If you purchased or otherwise acquired Mattel shares and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.