Mattel Hit With Derivative Suit In Del. Over $109M Tax Error
By Jeff Montgomery (May 24, 2021, 2:38 PM EDT) -- A Mattel Inc. stockholder has sued the toymaker's directors and others in Delaware Chancery Court on the company's behalf, alleging a cover-up of a tax error that understated by $109 million the company's late-2017 income and net loss, eventually triggering investigations and a 16% stock fall.
The five-count, proposed class complaint filed late Friday by lead stockholder Robert Colton Andersen, names 13 current or former officers and directors of the business along with PricewaterhouseCoopers LLP, Mattel's longtime independent auditor. All counts claim breaches of fiduciary duty or aiding and abetting breaches.
According to the suit, Mattel — already the target of a...
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