Hasbro Execs Sued for Stock Hit of Post-Pandemic Inventory Issue

Hasbro Inc.'s top brass concealed post-pandemic inventory problems that then hurt its 2023 revenue guidance, spurring its biggest stock drop in more than three years, says a shareholder derivative lawsuit filed Wednesday.

When the toy maker’s executives lowered 2023 expectations, in part due to managing excess inventory, its stock price fell almost 12% in a day, stockholder Dale Lee says in his complaint filed in the US District Court for the Southern District of New York. Share prices closed at $48.37 on Oct. 26, 2023—Hasbro’s largest single-day dunk since March 2020, according to data compiled by Bloomberg.

The stock drop ...