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Summary: The lawsuit fight between MGA Entertainment and Mattel over the Bratz dolls will continue to court after a judge denied a motion to dismiss it.
Mattel’s motion to dismiss a $1 billion trade-secret lawsuit filed by MGA Entertainment has been denied by a Los Angeles Superior Court Judge, according to the Sherman Oaks Patch.
The lawsuit claims that Mattel spied on MGA Entertainment at toy shows.
The battle comes from the federal court fight with Mattel over which company owns the line of popular dolls called Bratz.
To read more about Bratz dolls, click here.
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“We are grateful for this correct decision,” said Isaac Larian, Chief Executive Officer of MGA Entertainment. “Large, publicly traded companies are not above the law. Mattel, for years, has blatantly stolen trade secrets from MGA Entertainment and other toy companies. MGAE looks forward to justice finally being served, and to having a second jury find against Mattel on these issues. Today’s ruling is the first step in the courts sending a strong message to Mattel and other big companies that it is not OK to steal competitors’ IP and compete unfairly.”
The lawsuit was filed with the Los Angeles Superior Court in January, just one month after U.S. District Judge David O. Carter turned down a request for a new trial by MGA. The company wanted a new trial on its trade-secrets fight with Mattel.
To read more stories about Mattel, click here.
Mattel was issued a verdict against it in April of 2011 by jurors. The jurors based their decision on evidence presented at trial that showed the company took part in corporate espionage. The attorneys for MGA also argued that Mattel bullied stores into keeping Bratz dolls off of their shelves.
MGA was awarded $85 million and then Carter ruled that Mattel should pay an added $85 million in punitive damages. The first award was for compensatory damages.
The jury’s verdict was overturned by the U.S. Ninth Circuit Court of Appeals because Carter improperly ruled that MGA’s counterclaim was “compulsory” to the original complaint filed by Mattel. The reason for this is that the jury back in 2011 should not have been thinking about claims made by both companies at the same time.
To read more about MGA Entertainment, click here.
Carter’s order that Mattel pay attorneys’ and other fees of $137.8 million was upheld by the appellate court.
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