Mattel hit with new lawsuit over toy recalls
11/10/2007 16:24
An institutional shareholder of Mattel, the world's No. 1 toymaker, filed
a lawsuit yesterday, accusing the company's management of delaying the reporting
of toy defects to federal regulators.
The lawsuit filed in a Delaware court
by the Sterling Heights Police and Fire Retirement System in Michigan said
Mattel directors and officers broke federal laws by delaying such
reports.
The shareholder said the delay in reporting allowed the Los
Angeles-based company to sell significant amounts of its stock while the price
was artificially inflated.
Mattel has announced a series of recalls of more
than 21 million Barbie, Hot Wheels and other toys since August, citing excessive
levels of lead paint and inappropriate designs. The company is already facing a
number of lawsuits stemming from these recalls.
Xinhua
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