Hasbro Lawsuit, Securities Fraud Class Action Lawsuit Over Magic, The Gathering Inventory Misrepresentation—Lead Plaintiff Deadline Passed, Amended Complaint Filed November 2025
Hasbro faces an active securities fraud class action lawsuit alleging the company and its executives misled investors about Magic: The Gathering inventory levels and business practices between February 7, 2022, and October 25, 2023. The West Palm Beach Firefighters’ Pension Fund and City of Miami General Employees’ & Sanitation Employees’ Retirement Trust were appointed lead plaintiffs on August 29, 2025, and filed an amended complaint on November 26, 2025, in U.S. District Court for the Southern District of New York (Case No. 24-cv-08633). The lawsuit claims Hasbro concealed that overprinting Magic card sets damaged long-term brand value while inflating short-term revenue figures.
While the January 13, 2025, lead plaintiff deadline has passed, investors who purchased Hasbro common stock during the class period can still participate in the ongoing litigation as class members without serving as lead plaintiff.
What the Hasbro Lawsuit Alleges
Securities Fraud Over Magic: The Gathering Inventory
The lawsuit alleges Hasbro made materially false and misleading statements throughout the class period about the quality of inventory it held and the reason for rising inventory levels.
According to the complaint, Hasbro attributed steadily increasing Magic set releases to a customer segmentation strategy designed to serve different player demographics. The company claimed this approach was driving Magic’s growth responsibly.
In reality, plaintiffs allege Hasbro was overprinting Magic sets at low cost on short timelines specifically to compensate for revenue shortfalls in other company divisions. This practice, the lawsuit claims, created a glut of obsolete unsold Magic sets that accumulated in inventory.
The 30th Anniversary Set “Out of Stock” Allegation
Lead counsel’s investigation found that Hasbro’s pivotal Magic 30th Anniversary Set was not actually “out of stock” when company executives publicly represented it was.
The complaint alleges Hasbro simply posted an “out of stock” message on the sale website to falsely convey to the market that sales of the set were strong, when in fact significant inventory remained available.
This alleged deception was designed to create the impression of robust demand and successful execution of Hasbro’s segmentation strategy.
Truth Began Emerging in November 2022
On November 14, 2022, Bank of America analysts released a report detailing their investigation into Magic: The Gathering. The report concluded Hasbro was “killing its golden goose” and “destroying [Magic’s] long-term value” by “[o]verprinting Magic” sets.
However, defendants allegedly continued making false, reassuring statements to investors about inventory management despite mounting evidence of problems.
January 2023 Revenue Shock
On January 26, 2023, Hasbro previewed its fourth quarter results for fiscal year 2022 and shocked the market by admitting revenue would contract by 17% year-over-year.
To combat weakening sales, Hasbro announced it would lay off 15% of its global workforce and disclosed the immediate departure of Chief Operating Officer Eric Nyman.
The price of Hasbro common stock fell by more than 8% on this news, according to the complaint.
October 2023 Full Disclosure
The full truth emerged on October 26, 2023, when Hasbro announced fiscal year 2023 third quarter financial results revealing an 18% decline in Consumer Product revenues year-over-year.
CEO Gina Goetter disclosed that even after the Magic releases that had purportedly caused the buildup of Magic sets in inventory, that inventory remained “more stubbornly elevated than inventories elsewhere in the Company.”
Hasbro’s inventory in truth included leftover sets from past Magic releases that had gone unsold after the company’s overprinting stifled demand. The price of Hasbro stock fell by an additional $8.91 per share, or over 16%.
Similar to issues raised in Hasbro faces securities fraud class action lawsuit, corporate accountability for inventory misrepresentation and misleading financial disclosures continues driving major securities litigation.
What You Must Know
Legal Claims and Violations
The lawsuit alleges violations of the Securities Exchange Act of 1934, specifically:
Section 10(b) and Rule 10b-5: These provisions prohibit any manipulative or deceptive device in connection with the purchase or sale of securities. Hasbro allegedly made materially false statements and omissions that artificially inflated stock prices.
Section 20(a): This provision imposes liability on individuals who control persons who violate securities laws. The lawsuit targets Hasbro executives who allegedly controlled the company during the fraud period.
As a result of these alleged misrepresentations, Hasbro common stock traded at artificially inflated prices throughout the class period, causing investor losses when the truth emerged.
Current Case Status
The lawsuit was initially filed on November 13, 2024, by Bernstein Litowitz Berger & Grossmann LLP in the U.S. District Court for the Southern District of New York.
On August 29, 2025, the court appointed West Palm Beach Firefighters’ Pension Fund and City of Miami General Employees’ & Sanitation Employees’ Retirement Trust as lead plaintiffs and Bernstein Litowitz Berger & Grossmann LLP as lead counsel.
Lead plaintiffs filed their amended complaint on November 26, 2025. The case is now in the motion to dismiss phase, with Hasbro expected to challenge the sufficiency of the complaint.
The January 13, 2025, deadline for investors to apply to serve as lead plaintiff has passed, but investors can still participate as class members.
Who May Be Affected
The class includes all investors who purchased or otherwise acquired Hasbro common stock between February 7, 2022, and October 25, 2023, inclusive.
If you bought Hasbro stock during this period and held it when the truth emerged in January 2023 or October 2023, you may have suffered losses due to the alleged fraud.
You do not need to have served as lead plaintiff to participate in any potential recovery. All class members share in settlements or judgments on a pro rata basis according to their losses.
Similar Securities Fraud Cases
Hasbro’s case echoes broader patterns in securities litigation where companies allegedly misrepresent operational fundamentals to inflate stock prices.
Cases like Affirm faces multiple class action lawsuits and Rivian class action lawsuits allegations progress and latest updates demonstrate how investor protection laws hold companies accountable for misleading financial disclosures.
The Private Securities Litigation Reform Act of 1995 governs federal securities class actions, establishing procedures for lead plaintiff appointment and heightened pleading standards plaintiffs must meet.
What Damages Are Sought
The lawsuit seeks monetary damages for investors who purchased Hasbro stock at artificially inflated prices during the class period.
Damages calculations in securities fraud cases typically measure the difference between what investors paid for shares (inflated by fraud) and what shares were actually worth (absent the fraud).
The complaint does not specify a total damages amount, as final recovery depends on the number of shares purchased, timing of purchases and sales, and the artificial inflation proven at trial or negotiated in settlement.
What to Do Next
For Investors Who Purchased During Class Period
If you purchased Hasbro common stock between February 7, 2022, and October 25, 2023, preserve all documentation of your purchases.
Gather brokerage statements showing Hasbro stock purchases and sales, including dates, number of shares, and prices paid. Save confirmations of transactions and account statements covering the class period. Document any losses you suffered when Hasbro stock dropped in January 2023 or October 2023.
Contact Lead Counsel
You can contact lead counsel Bernstein Litowitz Berger & Grossmann LLP for information about joining the class action:
Scott R. Foglietta Email: [email protected] Phone: 212-554-1903
Multiple other law firms are also representing investors, including Robbins Geller Rudman & Dowd LLP, The Rosen Law Firm, Bragar Eagel & Squire P.C., The Gross Law Firm, and Bronstein Gewirtz & Grossman LLC.
Monitor Case Developments
Check the court docket for Case No. 24-cv-08633 in the U.S. District Court for the Southern District of New York through PACER (Public Access to Court Electronic Records) at pacer.gov.
Watch for orders on Hasbro’s anticipated motion to dismiss, discovery schedules, class certification decisions, settlement announcements, and trial dates.
Securities class actions typically take 2-4 years from filing to resolution, with many settling before trial.
Understand Your Rights
Participating in the class action does not require upfront legal fees. Securities class actions are handled on a contingency basis, meaning attorneys are paid from any recovery obtained.
You do not need to take any immediate action to remain part of the class. If the case settles or proceeds to judgment, you will receive notice with instructions on how to file a claim for your share of the recovery.
You have the right to opt out of the class action and pursue individual litigation if you prefer, though this requires hiring your own attorney and proving your case independently.
When to Consult an Attorney
Consider consulting a securities litigation attorney if you suffered substantial losses exceeding $100,000 from Hasbro stock purchases during the class period.
Large institutional investors or individuals with significant positions may benefit from individual representation to maximize recovery and maintain control over litigation strategy.
Attorneys can advise whether opting out of the class action makes sense for your situation or whether participating as a class member is the most cost-effective approach.
Protect Future Investments
The Hasbro case illustrates the importance of diversification and due diligence when investing in individual stocks.
No amount of research can completely protect against securities fraud, but understanding a company’s business model, monitoring analyst reports, and watching for red flags in financial disclosures can help.
Consider whether your portfolio has appropriate diversification to withstand losses from individual securities fraud cases.
Frequently Asked Questions
What is Hasbro being sued for?
Hasbro faces a securities fraud class action alleging the company and its executives misled investors about Magic: The Gathering inventory quality and business practices. The lawsuit claims Hasbro overprin Magic sets to compensate for revenue shortfalls elsewhere, creating obsolete inventory, while publicly representing that rising inventory reflected strong demand and successful customer segmentation.
Can I still join the Hasbro class action lawsuit?
Yes. While the January 13, 2025, deadline to apply as lead plaintiff has passed, all investors who purchased Hasbro common stock between February 7, 2022, and October 25, 2023, remain part of the class automatically. You don’t need to take action now but should preserve documentation of your purchases.
Who filed the Hasbro securities lawsuit?
The lawsuit was initially filed on November 13, 2024. The court appointed West Palm Beach Firefighters’ Pension Fund and City of Miami General Employees’ & Sanitation Employees’ Retirement Trust as lead plaintiffs on August 29, 2025. Lead counsel is Bernstein Litowitz Berger & Grossmann LLP, a nationally recognized securities litigation firm.
What is the current status of the case?
Lead plaintiffs filed an amended complaint on November 26, 2025, in the U.S. District Court for the Southern District of New York (Case No. 24-cv-08633). The case is in early stages, with a motion to dismiss expected. Securities class actions typically take 2-4 years to resolve.
How much compensation might investors receive?
Compensation amounts cannot be determined until the case settles or reaches judgment. Damages depend on factors including the number of shares purchased, timing of purchases and sales, and the artificial inflation proven. Securities fraud settlements vary widely based on total investor losses and company resources.
Do I need to hire my own lawyer to participate?
No. The class action attorneys represent all class members collectively on a contingency fee basis. However, investors with substantial losses exceeding $100,000 may want to consult an attorney about whether individual representation makes sense for their situation.
Has Hasbro admitted wrongdoing?
No. Hasbro denies all allegations in the lawsuit. The company has not publicly admitted any wrongdoing related to Magic: The Gathering inventory management or financial disclosures. The case remains in litigation with no settlement announced.
Last Updated: January 24, 2026
Disclaimer: This article provides general information only and does not constitute legal or investment advice.
If you purchased Hasbro stock between February 2022 and October 2023, preserve your transaction records and monitor this securities fraud case closely—your investment losses may be recoverable.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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