Pacific Spirit Marine Institute

Barbie Must Sell Dream House To Pay Legal Fees.

Thursday, October 11, 2007

More trouble for Mattel. You remember those are the people we used to trust to make toys for our children. If Mattel is able to survive their latest troubles I will be surprised.

Shareholders have lost up to 20% of the value of their stocks and are now finding out they may have been knowingly fleeced. Mattel toy problems didn’t start, nor will they stop with the massive recall of toys made in China with up to 186 times the legal level of lead.

If there could possibly be a worse offense than failing to report the injuries to children caused by their products, for months and in some cases knowing about dangerous defects for years; I don’t know what it could be.

The morally reprehensible team in charge at Mattel needs to face a jury for their negligent actions. Mattel was well aware of their safety failures, yet they failed to report and recall products that caused fires in homes, burned children, and in at least one case caused an infant to undergo lung surgery after a small piece of Mattel was inhaled.

One might assume if Mattel failed to report product defects they were aware of, they may certainly have been busy covering them up. Apparently in no case were they busy fixing these failures.

At least Mattel will have to face the justice system. Sterling Heights Police & Fire Retirement system, Michigan, has filed a suit seeking compensatory and other damages, the suit alleges Mattel failed to be forthright in its reporting defects in its products to regulators.

Adding to Mattel’s problems the FTC, Federal Trade Commission, will soon become involved as evidence surfaces that Mattel directors may have sold off at least $33 million dollars worth of their own stock shortly before 10’s of millions of Mattel toys were recalled. We can anticipate other shareholders to follow suit.

China is none too happy with the Mattel problems further tarnishing their reputation. China has plenty of product problems of their own without Mattel heaping on more.

If malfeasance is met with a blind eye in the U.S., insider trading certainly is not.
It looks as though, one way or another, punishment will be dealt to at least some of these criminals.

Barbie may have to sell her dream house and down-grade to a condo to pay her legal fees. And,this coming so soon after her break-up with Ken.

Labels: Barbie Dream house, China Toys, FTC, Mattel, lead paint