JAKKS Pacific (JAKK) Securities Fraud Class Action Lawsuit
JAKKS Pacific shareholder lawsuit investigation summary
On July 17, 2013, JAKKS announced its second quarter financial results, significantly missing its previously issued guidance, which had been recently reaffirmed in April 2013. JAKKS’ second quarter results included charges for license minimum guarantee shortfalls of $14.1 million and inventory impairment of $12.2 million. JAKKS noted that poor performance of several of the Company’s key properties contributed to the shortfall. As a result, JAKKS revised 2013 guidance from earnings of $0.63- $0.68/share to a loss of $2.56/share. JAKKS also suspended its dividend. Following this news, shares of JAKKS fell 39% to close at $7.00 on July 18, 2013. The underlying question then is when did senior executives know the underlying problems and did these same executives put in place the proper financial controls.
JAKKS shareholders that currently qualify for class action
Extent of JAKKS shareholder loss
Once news of the financial prolbems were disclosed to investors, JAKKS shareholders suffered a one day, 39% drop in share price.
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