Hasbro, Inc. (NYSE: HAS)
A class action lawsuit has been filed in the United States District Court for the District of Rhode Island on behalf of those who purchased shares of Hasbro, Inc. (NYSE: HAS), between April 24, 2017 to October 23, 2017 (the "Class Period").
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Hasbro’s business and prospects. Specifically, defendants knew or recklessly disregarded that Hasbro’s relationship with Toys “R” Us was becoming increasingly important to Hasbro’s business, as Toys “R” Us was the primary retail brick-and-mortar toy store in the United States, and that Toys “R” Us was in far worse financial condition than was being publicly reported and it would have to dramatically scale back its operations or file for bankruptcy and liquidate. In addition, Hasbro was experiencing significant undisclosed adverse sales issues in two key markets – the United Kingdom and Brazil – which were negatively impacting the Company’s efforts to grow sales in those markets. As a result of this information being withheld from the market, the price of Hasbro common stock was artificially during the Class Period to over $115 per share and Hasbro insiders were able to sell $147 million worth of their personally held Hasbro stock to the public at inflated prices.
Then on October 23, 2017, Hasbro announced its third quarter 2017 financial results for the period ended October 1, 2017. Hasbro reported that the United States and Canada were negatively impacted by the Toys “R” Us bankruptcy. This contributed to a 5% decline in the U.S. and Canada segment quarterly operating profit to $217.3 million, or 21.9% of net revenues, compared to $228 million, or 24.4% of net revenues in 2016. Hasbro’s CEO stated that, “[a]s a result of the Toys “R” Us bankruptcy filing in the U.S. and Canada, there was a negative impact on our quarterly revenues and operating profit.” And the Company’s CFO warned that the challenges in the U.K. and Brazil were anticipated to continue for the remainder of the year and sales would be up only 4% to 7% from a year ago in the fourth quarter. On this news, the price of Hasbro common stock declined from $92.69 per share to $89.75 per share, a 22% decline from the stock’s Class Period high of $115.95 per share.
If you are a current shareholder and/or purchased stock between April 24, 2017 to October 23, 2017 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.