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NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Hasbro, Inc. (“Hasbro” or the “Company”) (NASDAQ: HAS) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Hasbro common stock between February 7, 2022, and October 25, 2023, both dates inclusive (the “Class Period”). Investors have until January 13, 2025 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The Hasbro class action lawsuit alleges that defendants throughout the Class Period misrepresented the quality of inventory and the appropriateness of the levels of inventories carried by Hasbro and its retailers compared to customer demand. In truth, the Hasbro class action alleges that Hasbro had a significant buildup of inventory that it was struggling to manage and which far exceeded customer demand.
The Hasbro class action lawsuit alleges that on January 26, 2023, Hasbro previewed its fourth quarter results for fiscal year 2022 and admitted that revenue would contract by 17% year-over-year. To combat weakening sales, Hasbro announced it would be laying off 15% of its global work force, and at the same time disclosed the immediate departure of its COO, defendant Eric Nyman, the complaint alleges. On this news, the price of Hasbro common stock fell by more than 8%, according to the Hasbro class action lawsuit.
Then, on October 26, 2023, the Hasbro class action lawsuit further alleges that in announcing its financial results for the third quarter of fiscal year 2023, Hasbro revealed an 18% decline in Consumer Product revenues year-over-year, along with a significant reduction in guidance for the remainder of the year. In the attendant earnings call, Hasbro’s CEO, defendant Gina Goetter, further revealed that Hasbro was forecasting “$50-ish million of one-time cost” that was to be spent on “mov[ing] through inventory at the retailer level, extra marketing to move through the inventory, [and] extra obsolescence cost” in its Consumer Products segment, according to the complaint. On this news, the price of Hasbro common stock fell by an additional 11.7%, according to the Hasbro class action lawsuit.
If you purchased or otherwise acquired Hasbro shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com