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BOSTON, Nov. 06, 2019 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors and whistleblowers nationwide, is investigating Mattel, Inc. (NASDAQ: MAT) and certain of its officers and directors for potential violations of federal securities laws.
On August 8, 2019, Mattel announced that a whistleblower letter was sent to the company’s outside auditors alleging certain improprieties in accounting practices – resulting in the sudden termination of a scheduled Senior Note Offering. As a result, Mattel’s common stock dropped $2.12 per share or almost 12% in a single day of trading.
More recently, on October 29, 2019, the company reported the results of its investigation into the whistleblower allegations. Among other things, Mattel acknowledged that certain accounting “errors” occurred, and it would amend the Company’s 2018 Form 10-K to restate the last two quarters of 2017. Mattel also admitted to weaknesses in internal controls and violations of auditor independence rules.
Then, on November 6, 2019, the Wall Street Journal published an article entitled, “Mattel, PWC Obscured Accounting Issues, Former Executive Says,” which shed new light on Mattel’s accounting woes. According to the article, at the start of 2018, Mattel’s finance team uncovered the accounting error that had reduced Mattel’s loss for the previous year’s third quarter. Instead of admitting this mistake and material weaknesses in its accounting and reporting procedures, senior finance executives and the company’s auditor decided to bury the problem. “It was known within Mattel that if we took this approach, at worst we might get a slap on the wrist from the Securities and Exchange Commission,” the former executive said. “But if the company disclosed a material weakness …. it would be ‘the kiss of death’.”
Block & Leviton is investigating Mattel’s accounting practices and the sufficiency and reliability of Mattel’s investigation into the whistleblower allegations. If you have purchased or otherwise acquired Mattel securities and have questions about your legal rights, or possess information relevant to this investigation, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at firstname.lastname@example.org, or by visiting https://shareholder.law/mattel.
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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