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Mattel, PwC Must Face Investor Lawsuit Alleging ‘Cover-Up’

Jan. 27, 2021, 10:46 PM

Mattel Inc. must face a would-be class suit alleging it engaged in a “cover-up” of material misstatements from its 2017 financial results, after a federal judge in California declined to throw out the case.

The toymaker’s investors accused it of deceiving them about a financial statement that understated the company’s net loss by at least $109 million. Their allegations are sufficient to keep the case moving along against Mattel and its auditor, PricewaterhouseCoopers LLP, the U.S. District Court for the Central District of California said.

Mattel and its executives “spill much ink contending that certain allegations cannot independently ...