NEW YORK, July 30, Jul 30, 2013 – The LawFuel.com – The Best Law Firm Newswire Service — Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against JAKKS Pacific, Inc. (“JAKKS” or the “Company”) JAKK -2.00% and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 13-cv-5487-ODW, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of JAKKS between July 17, 2012 and July 17, 2013 both dates inclusive (the “Class Period”). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased JAKKS securities during the Class Period, you have until September 23, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
JAKKS is a leading designer, producer, marketer and distributors of toys and related consumer products.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business and operations. Specifically, Defendants made false and/or misleading statements concerning, and/or failed to disclose, among other things: (i) the extent of the negative impact that the shift in children’s preference for electronic devices was having on sales of the Company’s more traditional toys; (ii) the extent of the negative impact from poor sales of various of the Company’s licensed toy properties; and (iii) that as a result, the Company’s financial statements were materially false and misleading at all relevant times.
On July 17, 2013, after the market close, JAKKS slashed its full-year forecast of revenue and earnings, citing poor sales in light of a marked shift in children’s playing preference to electronic devices. In response, the Company said it would suspend its dividend, and implement a restructuring plan involving a “substantial reduction of leased space, employees and other overhead expenses.” On this news, JAKK shares fell $4.48 approximately 39% percent from a close of $11.48 per share on July 17, 2013, to a close of $7.00 per share on July 18, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.