Class Action Lawsuit Filed Against Hasbro: Shareholder Warning and Important Deadlines

Shareholder Alert: Hasbro Class Action Lawsuit

Introduction

Pomerantz LLP has issued a reminder for investors who have experienced losses related to Hasbro, Inc. (NASDAQ: HAS). A class action lawsuit, alleging securities fraud and other illegal practices by the company and certain officers, has recently been filed. Shareholders who wished to act have time-sensitive information regarding their potential involvement in the case.

Details of the Class Action

Investors are encouraged to contact Danielle Peyton at Pomerantz LLP or reach out via phone for further details about their potential role in the suit. Take note that to serve as Lead Plaintiff, interested shareholders must take action before January 13, 2024. They should provide their mailing address, telephone number, and the number of shares they hold when reaching out.

This legal action stems from revelations regarding Hasbro’s financial performance. On January 26, 2023, Hasbro gave a disappointing preview of its fourth-quarter results for the fiscal year 2022, announcing a staggering 17% year-over-year revenue contraction, contrary to prior expectations of a strong holiday season. In a drastic move to address slumping sales, Hasbro revealed plans to cut 15% of its workforce, alongside the unexpected resignation of COO Eric Nyman. Following this announcement, Hasbro's stock price experienced an immediate decline of $5.17, reflecting an 8.1% drop to $58.61 per share on January 27, 2023.

On October 26, 2023, the situation worsened as Hasbro disclosed its third quarter financial results for fiscal 2023. The company reported an 18% decrease in net revenues from its Consumer Products sector year-over-year, coupled with a significant reduction in projections for the year. CFO Gina Goetter informed investors of an estimated one-time cost amounting to around $50 million, primarily linked to inventory management and extra marketing efforts. This unfavorable news led to a further drop in Hasbro’s stock, plummeting by $6.38 or 11.7% to close at $48.37 per share on the same day.

About Pomerantz LLP

Pomerantz LLP is recognized as a leading firm specializing in corporate, securities, and antitrust class litigation. With over 85 years in operation, the firm has a long-standing reputation for advocating on behalf of shareholders affected by securities fraud and corporate misconduct. Their history traces back to founder Abraham L. Pomerantz, revered in the legal community as a pioneer in class action lawsuits.

The firm has successfully attained significant recovery for class members through comprehensive litigation strategies, which highlights their expertise and commitment to investors’ rights.

Conclusion

Shareholders of Hasbro, Inc. who believe they have incurred losses during the relevant class period are urged to act swiftly to participate in this class action lawsuit. A copy of the complaint and more information about joining the suit can be found on Pomerantz's website.

For assistance, please reach out to Danielle Peyton at Pomerantz LLP, using the contact details provided in this alert. Don’t miss the important cutoff date to protect your rights as a shareholder.