According to the Complaint, Hasbro, Inc. is a toy, game and entertainment company that makes popular toys and games like Monopoly, Transformers, and Nerf. It also produces entertainment content, including movies and TV shows, and own Wizards of the Coast, known for Magic: The Gathering and Dungeons & Dragons. This lawsuit was filed against the Company and five of its Officers.

During the early stages of the COVID pandemic, prior to the start of the Class Period, Hasbro faced an increase in demand as families locked down in their homes, and global supply chain disruptions impacted numerous industries. In response, Hasbro overpurchased inventory to ensure that it could meet demand.

The Complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions about the quality inventory that Hasbro held, and represented that its rising inventory levels reflected outstanding and anticipated demand, rather than excess supply that outpaced waning demand. As a result of these misrepresentations, the Complaint claims that Hasbro common stock traded at artificially inflated prices throughout the Class Period.