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Hasbro Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Hasbro, Inc. - HAS

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NEW YORK and NEW ORLEANS, Jan. 20, 2026 /PRNewswire/ -- Former Attorney General of Louisiana, Charle...

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AI Summary

Hasbro is under investigation by Kahn Swick & Foti following a Q3 report revealing an 18% decline in Consumer Product revenues. The company's full-year revenue guidance was also downgraded significantly, raising concerns about management transparency and possible fiduciary breaches.

Sentiment Rationale

The substantial revenue decline and legal troubles typically depress stock prices, as seen in other companies facing similar lawsuits impacting investor confidence.

Trading Thesis

Consider shorting HAS due to ongoing legal risks and worsening revenue outlook over the next quarter.

Market-Moving

  • HAS’s significant revenue decline may lead to further negative investor sentiment.
  • Ongoing SEC investigation could cause procedural delays in management changes.
  • Continued negative forecasts can pressure HAS stock prices in the short term.
  • Legal liabilities from the ongoing lawsuit may lead to increased operational costs.

Key Facts

  • Former Attorney General investigates Hasbro, prompting legal scrutiny.
  • HAS reported an 18% decline in Consumer Product revenues for Q3 2023.
  • Projected revenue decline for full year revised to 13%-15%, worsened forecast.
  • Securities class action lawsuit filed against HAS executives for undisclosed information.
  • KSF's investigation may uncover breaches of fiduciary duties by Hasbro's leadership.

Companies Mentioned

  • Hasbro, Inc. (HAS): Facing legal and operational challenges that could affect stock performance.

Corporate Developments

This situation falls under 'Corporate Developments' as it involves an investigation into potential fiduciary breaches and financial performance issues. The convergence of revenue declines with legal actions heightens scrutiny on Hasbro's management efficacy.

Investigation Launched into Hasbro, Inc. (HAS) by Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC ("KSF"), led by former Louisiana Attorney General Charles C. Foti, Jr., has initiated an investigation into Hasbro, Inc. (NasdaqGS: HAS). This comes on the heels of the company reporting a significant decline in consumer product revenues for the third quarter of 2023, raising concerns among shareholders and the market.

Q3 2023 Earnings Report Highlights

On October 26, 2023, Hasbro disclosed its third-quarter earnings, revealing an 18% year-over-year decline in consumer product revenues. The decline was attributed to several factors:

  • Exits from various business segments
  • Soft trends across the industry
  • Prioritization of inventory management strategies

As a result of these poor earnings, Hasbro revised its full-year guidance, with projections now indicating a revenue decline of 13% to 15%, a stark increase from the previously estimated decline of 3% to 6%.

Legal Implications for Hasbro Executives

Following the disappointing earnings announcement, certain executives at Hasbro faced legal repercussions, including a securities class action lawsuit. The lawsuit alleges that these executives failed to disclose material information, potentially violating federal securities laws. The situation remains under scrutiny, with ongoing developments expected as the legal proceedings progress.

KSF's investigation aims to determine if Hasbro's executives and directors have breached their fiduciary duties to shareholders or violated other state or federal laws. The findings could have serious ramifications for the company and its leadership.

Call for Information from Shareholders

KSF is reaching out to shareholders of Hasbro who may have pertinent information that could aid in the investigation. Individuals who have held shares for an extended period are encouraged to discuss their legal rights. Interested parties can contact KSF without any obligation by calling 1-833-938-0905 or emailing Managing Partner Lewis Kahn at [email protected]. Additional details can also be found on KSF's dedicated webpage for Hasbro investigations, available at ksfcounsel.com.

About Kahn Swick & Foti, LLC

Established as a prominent boutique securities litigation law firm, Kahn Swick & Foti, LLC is noted for its expertise in representing both institutional and retail investors. In the past year, KSF was recognized among the top 10 plaintiff law firms nationally, according to ISS Securities Class Action Services, based on total settlement value.

With offices in major cities including New York, Delaware, California, Louisiana, Chicago, and an international representative office in Luxembourg, KSF is committed to pursuing recovery for investors impacted by corporate malfeasance.

For More Information

To learn more about Kahn Swick & Foti, LLC and their ongoing legal efforts, please visit www.ksfcounsel.com.

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