Pension funds are suing Hasbro Inc., alleging the toy maker misled investors about its financial health as executives sold millions of dollars of shares they held.
The Providence Journal reports the City of Warren Police and Fire Retirement System in Michigan, and pension funds elsewhere, have sued Pawtucket, Rhode Island-based Hasbro in federal court over losses they sustained in 2017.
Continue Reading Below
Hasbro spokeswoman Julie Duffy says that the claims are meritless and that the company intends to "vigorously defend against them."
The suit alleges Hasbro officials downplayed how much the company relied on sales from the now-closed Toys R Us chain and misled analysts and investors about poor foreign sales.
The suit also alleges Hasbro of artificially inflating its common stock price, enabling its executives to collectively sell their stock.
Information from: The Providence Journal, http://www.providencejournal.com