Lawsuit accuses Mattel of insider trading
Lawyer Blogs
[##_1L|1092153030.jpg|width="120" height="101" alt=""|_##]Attorneys for a Michigan pension fund alleged in a shareholder lawsuit filed Wednesday that Mattel Inc. has misled investors by delaying the reporting of defects in its toys to federal regulators. The lawsuit, filed in Delaware's Court of Chancery, also accuses three current members and one former member of Mattel's board of directors of engaging in illegal insider trading by dumping more than $33 million in stock before the company's massive toy recalls this summer.
Since August, Mattel has announced three separate recalls of some 21 million toys because of dangers to children from lead paint or from tiny magnets that can be harmful if swallowed.
Attorneys representing the Sterling Heights, Mich., police and fire pension fund allege that Mattel knew about the defects for months but failed to report them to the Consumer Product Safety Commission, as required by federal law. They allege that the company has withheld information about its products from the commission for years in order to prop up sales and avoid fines, thereby artificially inflating the value of Mattel's shares and breaching their fiduciary duties to shareholders.
Officials with El Segundo, Calif.-based Mattel did not immediately respond to a telephone call and e-mail seeking comment on the lawsuit.
Related listings
-
Supreme Court wary 3rd-party lawsuits
Lawyer Blogs 10/10/2007[##_1L|1308844822.jpg|width="131" height="91" alt=""|_##]The Supreme Court voiced skepticism Tuesday about efforts to allow lawyers, accountants and others who do business with large corporations to be the targets of class-action securities suits. At...
-
Lawyer Pleads Guilty To Racketeering Conspiracy
Lawyer Blogs 10/09/2007[##_1L|1239062249.jpg|width="120" height="101" alt=""|_##]An ex-partner in the New York law firm Milberg Weiss pleaded guilty Tuesday in Los Angeles to a charge stemming from a scheme in which clients secretly were paid kickbacks for serving as named...
-
Supreme Court lets HP lawsuit move forward
Lawyer Blogs 10/09/2007[##_1L|1054578001.jpg|width="130" height="98" alt=""|_##]The U.S. Supreme Court has denied an appeal by Hewlett-Packard Co. to dismiss a class-action lawsuit against Compaq Computer Corp., which HP acquired in 2002. The lawsuit, filed in 2003 by Okla...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.