MGA Entertainment Inc. v. Mattel Inc. et al.

BC532708
January 13, 2014
State Court
California
Central Division, County of Los Angeles, Superior Court of the State of California

In the latest chapter of this saga, MGA Entertainment filed a $1 billion suit against Mattel in a California state court claiming that Mattel engaged in willful and deceptive business practices regarding the Bratz line of dolls. The complaint alleges that for over fifteen years, Mattel employees snuck into trade shows in order to steal advertising lists, price lists and new product concepts. One year ago, a Ninth Circuit panel threw out a $170 million jury award in favor of MGA on grounds that MGA's counterclaim was not properly before that jury; the Ninth Circuit left the door open for MGA to refile.

MGA Entertainment Inc.
Mattel Inc.
Uniform Trade Secrets Act

Case Report

In the latest chapter of this saga, MGA Entertainment filed a $1 billion suit against Mattel in a California state court claiming that Mattel engaged in willful and deceptive business practices regarding the Bratz line of dolls. The complaint alleges that for over fifteen years, Mattel employees snuck into trade shows in order to steal advertising lists, price lists and new product concepts. One year ago, a Ninth Circuit panel threw out a $170 million jury award in favor of MGA on grounds that MGA's counterclaim was not properly before that jury; the Ninth Circuit left the door open for MGA to refile.

Months ago, we reported on the ongoing saga between Mattel and MGA. Now, a California state court judge tentatively rejected Mattel Inc.'s bid to toss MGA Entertainment Inc.'s $1 billion suit alleging Mattel stole Bratz doll trade secrets, claiming the 2011 dismissal of MGA's racketeering claims in federal court does not preclude the current suit at issue. We will keep an eye on this developing matter.