Mattel Investors Want First Court OK of $98 Million Settlement

Mattel Inc. investors who say it made and then hid material misstatements in its 2017 financial results asked a federal judge in California for initial approval of their $98 million deal with the company and auditor PricewaterhouseCoopers LLP.

The cash settlement represents an “excellent recovery” compared to maximum damage estimates ranging from $320 million to $550 million, the toymaker’s investors said in documents filed as part of their preliminary settlement approval bid in the U.S. District Court for the Central District of California.

The investors accuse Mattel of deceiving them about a financial statement that understated the company’s net ...