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Investigations  /  10.16.2018

Shareholder Investigation of Hasbro, Inc.

Hasbro, Inc. (HAS) Accused of Misleading Investors About Impact of Toys “R” Us Bankruptcy

According to the filed class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 24, 2017 and October 23, 2017, Toys “R” Us, Inc. is one of Hasbro, Inc. (HAS) biggest customers, accounting for 9% of the company’s consolidated net revenues in fiscal year 2016. Although Hasbro was experiencing sales issues in two key markets and likely knew that Toys “R” Us would file for bankruptcy and liquidate, Hasbro represented that the company was well-positioned to deliver profitable growth. Before the extent of the issues Hasbro faced became publicly known, Hasbro insiders sold $147 million of their personally held Hasbro stock. On September 19, 2017, Toys “R” Us filed for bankruptcy protection. Then, on October 23, 2017, Hasbro admitted that the company’s financials had been negatively impacted by the Toys “R” Us bankruptcy, including a 5% decline in Hasbro’s U.S. and Canada segment quarterly operating profit. On this news, Hasbro’s stock fell from the class period high of $115.95 to only $89.75 per share on October 23, 2017, and has yet to recover.

Hasbro, Inc. (HAS) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.

Shareholder Information

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Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

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