Press release from Business Wire
Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of JAKKS Pacific, Inc.
Saturday, August 10, 2013
Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of JAKKS Pacific, Inc.00:32 EDT Saturday, August 10, 2013
BENSALEM, Pa. (Business Wire) -- Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of purchasers of the securities of JAKKS Pacific, Inc. (“JAKKS” or the “Company”) (NASDAQ:JAKK) concerning possible violations of federal securities laws. The investigation focuses on the Company's statements concerning its business and financial performance and prospects between February 21, 2013 and July 17, 2013.
JAKKS develops, produces and markets, in the United States and internationally, toys and consumer products, including action figures and accessories based on the Monsuno, Batman, Ultimate Fighting Champion, Total Non-Stop Action wrestling and Pokémon franchises.
On July 17, 2013 JAKKS announced a net loss of $46.9 million for its second quarter 2013, and a reduction in its full-year 2013 financial guidance. According to the Company, “charges for license minimum guarantee shortfalls of $14.1 million and inventory impairment of $12.2 million” contributed to the disappointing results, in addition to “poor performance of several of our key properties…along with unusually cool weather that affected seasonal toy sales leading to more aggressive markdowns at retail.” The Company attributed the decline in sales to “the continuing change in play patterns of children of all ages, who continue to rely more and more on smart devices for their fun and entertainment.” As a result of this news, on July 18, 2013 the price of JAKKS stock fell approximately 39%, to a closing price of $7.00 per share on July 18, 2013, on extremely heavy volume.
If you purchased JAKKS shares, if you have information or would like to learn more about these claims, or if you purchased JAKKS shares prior to February 21, 2013 and have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire