Mattel Agrees to Pay SEC $3.5 Million to Settle Misstatements from 2017
21 Outubro 2022 - 6:18PM
Dow Jones News
By Denny Jacob
The Securities and Exchange Commission said Friday that toy
maker Mattel Inc. agreed to pay $3.5 million to settle charges
related to misstatements for financial statements from 2017.
The regulator said Mattel understated the tax-related valuation
allowance for the third quarter of 2017 by $109 million and
overstated the tax expense for the fourth quarter of 2017 by the
same amount. Mattel's third and fourth quarter net loss and loss
per share were understated by 15% and overstated by 63%,
respectively, as a result, the SEC said.
The SEC said its order found that, at the time, Mattel had no
internal control specifically related to calculating a valuation
allowance.
Mattel agreed to a cease-and-desist order as well as the
monetary penalty without admitting or denying the findings, the SEC
said.
The regulator also said it is also initiating litigation against
Joshua Abrahams, a former audit partner at PricewaterhouseCoopers
LLP, to determine whether he engaged in improper professional
conduct and violated auditor independence rules.
The SEC said its separate order against Mr. Abrahams alleges
that he violated numerous professional standards in the third
quarter's interim review and the 2017 annual audit of the toy
maker's financial statements. The regulator said its order further
alleges that Mr. Abrahams failed to maintain independence by
providing prohibited human resource advice to Mattel, including
hiring suggestions as well as who shouldn't be hired.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
October 21, 2022 17:03 ET (21:03 GMT)
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