Mattel Hit With Lawsuit

0

An institutional shareholder of Mattel Inc. accused the company’s directors and officers of knowingly allowing the company to break federal laws by delaying the reporting of defective toys.


The Sterling Heights Police & Fire Retirement System in Michigan accused the company’s leadership of failing to ensure that the El Segundo-based toymaker report potentially hazardous defects to federal regulators.


The lawsuit, which was filed in Delaware Chancery Court Wednesday, said the delay in reporting allowed directors to sell significant amounts of Mattel stock while the price was artificially inflated.


Mattel did not respond to requests for comment.


Mattel has announced recalls of more than 21 million Chinese-made Barbie, Hot Wheels and other toys since August.


Shares in Mattel gained 7 cents to $22.82 in early trading Wednesday on the New York Stock Exchange.

No posts to display