Hasbro (Nasdaq: HAS) shareholders filed a 76-page federal lawsuit on January 21 against company executives, alleging they misled investors about Magic: The Gathering’s growth while overproducing cards to mask financial problems in other divisions.
Shareholders Joseph Crocono and Ultan McGlone accuse Hasbro CEO Chris Cocks, former Wizards of the Coast president Cynthia Williams, and multiple board members of breaching fiduciary duties. The US District Court for Rhode Island complaint alleges management issued false statements during shareholder calls between 2021 and 2023, despite a 2022 Bank of America report warning that overproduction was destroying the brand’s long-term value.
The plaintiffs claim artificially inflated stock prices caused Hasbro to overpay by $55.9 million when repurchasing 1.4 million shares for $125 million between April and July 2022. The lawsuit states that Hasbro was printing Magic sets exceeding consumer demand to generate revenue and offset shortfalls elsewhere.
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The complaint alleges Hasbro faked scarcity for its controversial $999 30th Anniversary Edition. Wizards of the Coast tweeted in 2022 that the product was unavailable, implying immediate sellout.
The lawsuit claims this resulted from a management plan to pause sales if negative perception hurt performance. Former employee testimonies indicate only a portion sold, with some sets later found in a Texas landfill.
Hasbro has not publicly responded to the lawsuit, which was filed weeks before the company’s February 10 earnings call addressing fourth-quarter 2025 results.
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