Investor Alert: Class Action Lawsuit Filed Against Hasbro, Inc.

NEW YORK, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a prominent law firm in the United States, has announced that a class action lawsuit has been initiated against Hasbro, Inc. ("Hasbro" or "the Company") and specific officers of the company.

Class Definition

This lawsuit aims to seek damages on behalf of investors who purchased or acquired Hasbro securities from February 07, 2022 to October 25, 2023, which is referred to as the "Class Period." Individuals who fall into this category and are seeking to participate in the lawsuit can do so by visiting the firm's website.

Case Details

The filings claim that during the Class Period, the defendants made many false and misleading statements regarding Hasbro’s inventory quality. They suggested that rising inventory levels indicated strong demand; however, the reality was that there was an oversupply that exceeded diminishing demand. Consequently, Hasbro's stock was traded at inflated prices throughout this period.

It is alleged that the defendants were aware of the situation, knowing they had overstocked inventory far beyond customer demand. This reality began to surface on January 26, 2023, when Hasbro released a preview of its fourth quarter results for fiscal year 2022. Despite prior claims of a strong 2022 holiday season, Hasbro revealed a substantial 17% decline in revenue compared to the previous year. In an effort to address decreasing sales, the company announced the dismissal of 15% of its workforce globally and confirmed the sudden exit of its Chief Operating Officer. Following these revelations, Hasbro's stock price fell by more than 8%, translating to a decrease of $5.17 per share.

The situation worsened on October 26, 2023, when the company disclosed its third-quarter financial results for fiscal year 2023. Investors were taken aback to learn of an 18% drop in Consumer Product revenues year-over-year, and the company also provided a significantly lower financial outlook for the remaining year. Additionally, Hasbro indicated that it expected to incur approximately $50 million in one-time costs related to managing excess inventory, increased marketing efforts, and other expenses attributed to the Consumer Products segment. This news further caused the stock price to decline by over 11%, resulting in a drop of $6.38 per share.

What's Next?

A class action lawsuit has already been filed, and potential participants can review the Complaint through the firm's website. For those who suffered losses related to Hasbro, it is important to note that the deadline to request to be appointed as lead plaintiff is January 13, 2025. However, investors can still benefit from any recovery without having to serve as lead plaintiff.

There is No Cost to You

The firm operates on a contingency fee basis, meaning that they will only seek to recover their legal fees and expenses from the court if they are successful in winning the case.

Why Bronstein, Gewirtz & Grossman?

Bronstein, Gewirtz & Grossman, LLC is recognized nationally for representing investors in securities fraud class actions as well as shareholder derivative lawsuits. The firm has successfully recovered hundreds of millions for investors across the nation.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information

For more information, contact Bronstein, Gewirtz & Grossman, LLC – Peretz Bronstein or Nathan Miller at 332-239-2660 or via email.

lawsuit, Hasbro, investors