This from the American Association of Justice quoting the New York Times:
“A local pension fund in Michigan filed a shareholder suit yesterday against Mattel and its board, asserting that a mishandling of product safety procedures was responsible for three toy recalls during the summer. The suit claims that Mattel’s directors, including the chief executive, Robert A. Eckert, breached their duty to shareholders by allowing the company to delay the reporting of hazardous toys beyond the 24-hour window required by federal regulators. The suit also accuses four directors of selling $33 million shares of Mattel stock from late January to early May and profiting from insider knowledge of coming problems. The suit, by the Sterling Heights Police and Fire Retirement System, seeks compensation from board members for the loss that shareholders may incur from the recalls. It was filed in state court in Delaware, where Mattel is incorporated. Mattel did not respond to a request for comment on the case.”
Louise Story, New York Times 10/11/07
For more information on this subject, please refer to our section on Defective and Dangerous Products.
Steve is the Managing Shareholder of Steven J. Klearman & Associates, a civil litigation law firm located in Reno, Nevada. He practices primarily in the areas of civil litigation and injury law, and has authored one of the definitive guides to Nevada civil law that is widely used by Nevada judges and attorneys, his book entitled Elements of Nevada Legal Theories.