NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Hasbro, Inc. (“Hasbro” or the “Company”) (NASDAQ:HAS) securities during the period of February 7, 2022 to October 25, 2023, inclusive (“the Class Period”). Investors have until January 13, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On January 26, 2023, when the Company previewed its fourth quarter results for fiscal year 2022, Hasbro admitted that revenue would contract by 17% year-over-year, despite having repeatedly touted the apparent strength of the 2022 holiday season. Hasbro disclosed that it would be laying off 15% of its global workforce to combat weakening sales, followed by the announcement of Eric Nyman’s, the then-Chief Operating Officer, immediate departure from the Company. On this news, the price of Hasbro shares declined by $5.17 per share, or approximately 8%, from $63.78 per share on January 26, 2023, to close at $58.61 on January 27, 2023.
Then, on October 26, 2023, when Hasbro announced its financial results for its fiscal year 2023 third quarter, it disclosed an 18% decline in Consumer Product revenues year-over-year, along with a significant reduction in guidance for the remainder of the year. Hasbro also revealed that it was forecasting $50-ish million of one-time cost that was to be spent on moving through inventory at the retailer level, extra marketing to move through the inventory, and extra obsolescence cost in its Consumer Product segment. On this news, the price of Hasbro fell by $6.38 per share, or approximately 11%, from $54.75 per share on October 25, 2023, to close at $48.37 on October 26, 2023.
The complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions about the quality inventory that Hasbro held and represented that its rising inventory levels reflected outstanding and anticipated demand, rather than excess supply that outpaced waning demand.
If you purchased or otherwise acquired Hasbro securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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