On January 25, 2017, Defendants issued a press release announcing Mattel's 2016 fourth quarter and year-end financial results.  For the fourth quarter, Mattel reported that compared to the prior year period, its worldwide net sales fell 8%, its gross margins fell 14% and its operating income fell 11%.  Later that day, during a conference call with analysts and investors, Defendants partially attributed the disappointing results to elevated sales adjustments and heavier discounting to liquidate excess inventory in the retail channel.

On April 20, 2017 after the market closed, Defendants issued a press release announcing Mattel's financial results for the quarter-ended March 31, 2017.  Compared to the prior year period, worldwide net sales and gross margins each declined over 15% and Mattel's operating loss increased over 158%.  Later that day, during a conference call with analysts and investors, Defendants again partially attributed the disappointing results to the retail inventory overhang and the resulting slower pace of reorders by retailers, with sales in North America and Europe particularly impacted.

Whistleblowers:  Persons with non-public information regarding Mattel should consider their options to help in the investigation or take advantage of the SEC Whistleblower program.  Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.  For more information, call Reed Kathrein at 510-725-3000 or email [email protected].

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