Hasbro, Inc. (NASDAQGS: HAS)
Class Period: April 24, 2017 - October 23, 2017
Lead Plaintiff Deadline: November 27, 2018
Allegations: During the class period, Hasbro, Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) 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; (2) 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; and (3) Hasbro was experiencing significant adverse sales issues in the key markets of the United Kingdom and Brazil which were negatively impacting the Company’s efforts to grow sales in those markets.
2018-11-16 22:50 ET - News Release
NEW ORLEANS, Nov. 16, 2018 (GLOBE NEWSWIRE) -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until November 27, 2018 to file lead plaintiff applications in a securities class action lawsuit against Hasbro, Inc. (NasdaqGS: HAS), if they purchased the Company’s shares between April 24, 2017 and October 23, 2017, inclusive (the “Class Period”). This action is pending in the United States District Court for the District of Rhode Island.
About the Lawsuit
Hasbro and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On October 23, 2017, the Company disclosed disappointing 3Q2017 financial results including that U.S. and Canada operations were negatively impacted by the Toys “R” Us bankruptcy, contributing to a 5% decline in operating profit to $217.3 million, or 21.9% of net revenues, compared to $228 million in 2016. Further, the Company’s CFO advised that challenges in the U.K. and Brazil would likely continue through the year with sales increasing only 4% to 7% from the fourth quarter a year ago.
On this news, the price of Hasbro stock plummeted.
According to Hasbro's Quarterly report, Oct 22, 2018
Hasbro Gaming revenue increased slightly to $280.8 million. Continued revenue gains in DUNGEONS and DRAGONS, DUEL MASTERS, JENGA and DON’T STEP IN IT, as well as new social game launches, were partially offset by declines in PIE FACE and other gaming properties. Hasbro Gaming revenues increased in the U.S. and Canada segment but declined in the International and Entertainment and Licensing segments. Hasbro’s total gaming category was up 5% to $447.8 million, including growth in MONOPOLY and MAGIC: THE GATHERING.
This is the only mention of D&D in the Hasbro quarterly report. Hasbro has made no press releases since Oct 22.
Hasbro has had a hard year: