Mattel, Inc.

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