Defendant Name: Mattel, Inc.

Defendant Type: Public Company
SIC Code: 3942
CUSIP: 57708110

Initial Case Details

Legal Case Name In the Matter of Mattel, Inc.
First Document Date 21-Oct-2022
Initial Filing Format Administrative Action
File Number 3-21213
Allegation Type Issuer Reporting and Disclosure
AAER 4355

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 21-Oct-2022
Headline Total Penalty and Disgorgement $3,500,000

Related Documents:

33-11122 21-Oct-2022 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On October 21, 2022, the SEC instituted settled cease-and-desist proceedings against Mattel, Inc., stating: "On August 8, 2019, Mattel disclosed in a Form 8-K that it was made aware of an anonymous whistleblower letter. The letter alleged accounting errors and questioned the independence of Joshua Abrahams (“Abrahams”), the then-lead engagement partner for Mattel with the company’s outside audit firm, PricewaterhouseCoopers LLP (“PwC”). Mattel terminated its pending $250 million senior notes offering, and its audit committee initiated an independent internal investigation. The audit committee’s investigation concluded that there were material misstatements in the tax-related valuation allowance for Q3 2017, which was understated by $109 million, and in the tax expense for Q4 2017, which was overstated by $109 million."
2022-189 21-Oct-2022 Press Release--Administrative Proceeding
SEC Charges Mattel with Financial Misstatements and Former PwC Audit Partner with Improper Professional Conduct
On October 21, 2022, the SEC announced that "California-based Mattel Inc. has agreed to pay $3.5 million to settle charges relating to misstatements in its third and fourth quarter 2017 financial statements."

Related Actions:

In the Matter of Joshua Abrahams, CPA
Joshua Abrahams, CPA