Hasbro, Inc. Securities Lawsuit Investigation

Shamis & Gentile, P.A. is investigating potential shareholder claims on behalf of Hasbro, Inc. (HAS) against certain of its officers and directors for alleged breaches of fiduciary duty and other violations of law.

If you’ve held Hasbro shares since at least February 2022 and still own stock today, you may be eligible to seek reforms and recovery on behalf of the Company at no cost.

About Hasbro

Hasbro is a global play and entertainment company incorporated in Rhode Island, with its principal executive offices in Pawtucket, Rhode Island.

The company operates through three main business segments: Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.

What's being investigated

Attorneys are investigating whether Hasbro’s officers and directors breached fiduciary duties or failed in their oversight of inventory management, demand forecasting, and related disclosures.

According to allegations asserted in a federal class action complaint, Hasbro and certain senior executives repeatedly told investors that inventory levels were “high quality” and appropriately sized to meet demand. For example, on the Q4 2021 earnings call on February 7, 2022, management stated that “the inventory we had at year-end is of very high quality.”

Similar assurances were made on the Q2 2022 call on July 19, 2022, when executives said inventory was “well positioned this year with the inventory to meet that demand,” and again on the Q1 2023 call on April 27, 2023, when management told investors the Company had made “good progress on reducing retailer inventories.”

Following these disclosures, shares fell 11.7%, from $54.75 on October 25, 2023 to $48.37 on October 26, 2023, as investors alleged these results exposed earlier misstatements about inventory quality.

Throughout 2022 and 2023, management allegedly reassured investors that inventory buildups reflected strong retail momentum and effective supply-chain management. The complaint contends these statements were materially misleading, masking serious internal problems that later resulted in write-downs, discounting, and guidance cuts disclosed in October 2023.

The shareholder investigation examines whether Hasbro’s board and Audit Committee failed to identify or act upon red flags concerning inventory quality, retailer backlogs, and financial disclosure controls. Such failures could implicate fiduciary duties.

Key timeline

• February 7, 2022: On the Q4 2021 earnings call, management allegedly reiterated that inventory levels were well-positioned to meet demand. Investors allege this assurance was misleading because internal data already showed rising excess inventory.
• January 26, 2023: Hasbro previewed weak fourth-quarter 2022 results, announced a 17% revenue decline, a 15% workforce reduction, and the departure of COO Eric Nyman. Investors allege these disclosures partially revealed underlying inventory and operational failures.
• April 27, 2023: During the first-quarter 2023 earnings call, executives stated Hasbro had made “good progress reducing inventory.” Plaintiffs claim this statement was misleading given continuing excess stock levels.
• October 26, 2023: Hasbro announced Q3 2023 results, claiming inventory levels were improving and “appropriately sized for demand,” but simultaneously reported an 18% decline in Consumer Products revenue, $50 million in inventory-related costs, and cut full-year guidance to a 13 to 15% decline.
• 2023 Form 10-K (filed early 2024): Hasbro reported Consumer Products operating losses due to obsolescence charges, closeouts, and inventory write-downs, highlighting the impact of inventory reduction efforts.

Why investors may be concerned

Investors allege that Hasbro’s management and board may have failed to disclose material information about inventory levels, forecasting, and the true state of Consumer Products demand. Investors allege that misleading statements or omissions regarding inventory risks and financial guidance may have contributed to investor losses.

There are also questions about whether the board’s Audit Committee and executive officers adequately monitored mission-critical risks such as inventory forecasting and retailer inventory backlogs.

Stockholders argue that these alleged oversight failures could implicate fiduciary duties under Rhode Island law, especially if the board did not respond to red flags about inventory quality or disclosure controls.

Your Rights and Next Steps

If you held Hasbro shares during the relevant period and continue to hold them today, you may have standing to take action on behalf of the Company.

Under Rhode Island law, shareholders can:

• Request internal company records to evaluate potential wrongdoing.
• Pursue a stockholder derivative claim if evidence indicates that officers or directors breached fiduciary duties.
• Seek corporate governance reforms or restitution to Hasbro if a court finds oversight failures.

Participation in the investigation is cost-free and does not require filing a lawsuit. It preserves your rights while the facts develop and may position you to benefit from any future settlement or court-ordered relief.

How Shareholders Can Take Action

Securities investigations are time-sensitive. If you've held Hasbro securities since at least February 2022, and still hold some shares today, you may be eligible to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

Please complete the form below to join the investigation and ensure your rights are protected as the matter progresses.