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Mattel could seek $1.6bn payout

Jul 24 2008 11:29

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Los Angeles - The maker of Bratz dolls has asked a judge to block testimony from an expert witness expected to claim that Mattel Inc is owed some $1.6bn in lost profits and other damages from the popular dolls, according to court documents filed in the case.

MGA Entertainment Inc filed the motion after a federal jury ruled last week that the designer of MGA's Bratz characters conceived the idea for the dolls while working for Mattel.

The jury also ruled that Los Angeles-based MGA and its chief executive, Isaac Larian, were liable for converting Mattel property for their own use and intentionally interfering with the contractual duties owed by the designer to Mattel.

The jury will decide possible damages during a separate proceeding that began Wednesday.

Mattel lawyer John Quinn declined comment on the figures, saying in a prepared statement the company would only discuss evidence regarding damages during the court proceedings.

In its court filing dated July 18, MGA targets the expected testimony of accountant Michael Wagner.

Company lawyers cite Wagner as saying in an expert report filed Feb. 11 that MGA owes Mattel about $234m in profits generated by the sale of Bratz dolls and $366m for profits earned from Bratz-branded goods, such as key chains, alarm clocks and toothpaste.

Wagner is also cited in the documents as saying Larian should pay El Segundo-based Mattel $250m for his share of MGA profits and another $773m for his total interest in the Bratz product line.

The documents say Wagner's claims were "overlapping and duplicative" because they seek the same damages from the company and Larian himself.

 
 
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