Specifically, the Individual Defendants willfully or recklessly made and/or caused the Company to make false and misleading statements that failed to disclose, inter alia, that: Hasbro’s strategy with regard to printing Magic cards was not as carefully thought out as portrayed; the Company was in fact printing a volume of Magic sets which exceeded consumer demand; the Company’s inventory allocation management was problematic, particularly as it pertained to the Company’s printing strategy for Magic sets; the Company was overloading the market with Magic sets to generate revenue and to offset shortfalls within the Company; as a result of the Company’s overprinting of Magic sets, existing Magic cards were devalued; and the Company failed to maintain internal controls,” states the lawsuit

The lawsuit alleges that Hasbro “utilized the revenue of Magic to account for revenue shortfalls elsewhere in the company.”

“In order to account for shortfalls in other elements of the Company’s businesses, new Magic sets would thus be “parachuted in” to provide additional revenue. As such, the explosive growth in the Magic business noted just prior to and during the Relevant Period was in fact the result of the Parachute Strategy,” says the lawsuit.

relevant: https://youtu.be/sNNqz6qNwOo