Mattel, Inc. Rotten Score Breakdown
Corporate Misconduct
0.0ptsCommunity concern only
Community ratings exist, but no approved evidence has been submitted. Community ratings do not affect the Rotten Score.
Avg Rating: 5.00Ratings: 1Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Human Rights & Exploitation
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Fraud & Corruption
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Deceptive Practices
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Environmental Harm
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Sustainability Deception
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Workplace Misconduct
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Financial Misconduct
15.0ptsNo flavor assigned
Avg Rating: 5.00Ratings: 1Severity Score: 3.00Evidence Count: 1Contribution: 15.0 pts
Misconduct: low 0 · medium 1 · high 0
Remediation: low 0 · medium 0 · high 0ⓘ cap: 25%
Mattel Paid $3.5 Million to Settle SEC Charges Over Financial Misstatements
In October 2022, Mattel Inc. agreed to pay $3.5 million to settle U.S. Securities and Exchange Commission charges relating to misstatements in its third- and fourth-quarter 2017 financial statements.
The SEC found that Mattel understated a tax-related valuation allowance for the third quarter of 2017 by $109 million and overstated tax expense for the fourth quarter by the same amount. The errors materially distorted the company's reported quarterly net losses and loss per share.
The SEC found violations of negligence-based antifraud, reporting, books-and-records and internal-controls provisions. Without admitting or denying the findings, Mattel agreed to a cease-and-desist order and the $3.5 million civil penalty.
Source:
U.S. Securities and Exchange Commission
https://www.sec.gov/newsroom/press-releases/2022-189