Mattel Faces Class Action Lawsuit Amid Rising Barbie Sales
Mattel, the toy giant behind Barbie and Hot Wheels, faces a class action lawsuit in the U.S. District Court for the Central District of California. The lawsuit alleges false statements and omissions about the company's business. Despite this, Barbie's sales have been on the rise, with a 12% increase in the most recent quarter. Meanwhile, a live-action Barbie movie is in production.
The lawsuit names Mattel, its CEO Ynon Kreiz, and CFO Joseph Euteneuer as defendants. It claims that the company failed to disclose declining demand for its products, including Barbie and Hot Wheels. Mattel is accused of having an excess of inventory, which was not revealed to investors. The plaintiffs seek certification of a class action, a jury trial, and compensatory damages.
Mattel has a policy of not commenting on litigation matters. However, the company's Chief Brands Officer Richard Dickson has spoken about Barbie's evolution, stating that the iconic doll now represents feminist ideals and diversity. This comes as Barbie's gross sales have grown for the fifth consecutive quarter. The Hot Wheels brand also saw a 9% rise in sales in the fourth quarter, reaching its highest full-year sales ever.
Despite the ongoing lawsuit, Mattel's Barbie and Hot Wheels brands continue to perform well commercially. With a live-action Barbie movie on the horizon, the company's future appears to be looking up. The outcome of the lawsuit remains to be seen, but Mattel's commitment to evolving its products and brands is clear.
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