Mattel Investors Win Class Status in Suit Alleging ‘Cover-Up’

Mattel Inc. investors who say the company engaged in a “cover-up” after making material misstatements in financial results may proceed with their securities suit as a class, a federal judge in California said.

Investors accuse the toymaker and its auditor of deceiving them about a financial statement that understated the company’s net loss by at least $109 million. The class includes everyone who acquired Mattel common stock from Aug. 2, 2017, through Aug. 8, 2019, and lost money as a result, with exceptions for those with close ties to the company, the U.S. District Court for the Central District of ...