According to the Complaint, Mattel designs, manufactures, and markets a range of toy products worldwide. Its portfolio of brands and products include such household names as FisherPrice, Barbie, Hot Wheels, Matchbox, Masters of the Universe, American Girl and Thomas & Friends. The Company purports to be the owner of one of the strongest portfolios of toy brands in the world with vast intellectual property potential.
On October 26, 2017, Mattel filed its financial report for the third quarter of 2017 with the U.S. Securities and Exchange Commission. The Complaint alleges statements in the financial report were materially false and misleading and failed to disclose material adverse facts about the Company’s business, operations, and prospects. The Complaint further alleges that the Defendants misled investors by reporting a net loss of $603.3 million for the third quarter which was understated by $109 million due to inappropriately calculating its tax valuation allowance.
On April 20, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on May 29. Defendants filed Motions to Dismiss the amended Complaint on July 28. On January 26, 2021, the Court issued an Order denying Defendants' Motions to Dismiss. Lead Plaintiffs filed a Motion for Class Certification on April 30, and on October 6, the Court granted the Motion for Class Certification.