Hasbro Fraud Investigation
Is Hasbro in worse trouble than we realized? Unhappy investors have initiated an investigation into possible unlawful business activities.
Law firms Pomerantz and Rosen have announced they’re looking into claims that some of Hasbro, Inc.’s “officers and/or directors” have engaged in securities fraud or other illegal practices.
The Rosen suit specifies the following:
- Hasbro’s relationship with Toys “R” Us was becoming increasingly important to Hasbro’s business, but Toys “R” Us was in far worse financial condition than was being publicly reported;
- Hasbro was experiencing significant undisclosed adverse sales issues in two key markets – the United Kingdom and Brazil – which were negatively impacting Hasbro’s efforts to grow sales in those markets; and
- as a result of foregoing, defendants’ statements about Hasbro’s business and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Coming so soon after the news that potentially hundreds of Hasbro staff may be facing termination, it’s not a pretty picture for our preferred purveyors of plastic perfection. Hopefully there is nothing sinister going on here and the issues will be resolved to the satisfaction of all parties, and we will of course continue to follow this news as it develops.
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