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Documents: Mattel could seek $1.6B in Bratz case


ASSOCIATED PRESS

6:02 p.m. July 23, 2008

LOS ANGELES – The maker of Bratz dolls has asked a judge to block testimony from an expert witness expected to claim Mattel Inc. is owed some $1.6 billion in lost profits and other damages from the popular dolls, according to court documents obtained Wednesday.

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 CEO 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 $234 million in profits generated by the sale of Bratz dolls and $366 million 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 $250 million for his share of MGA profits and another $773 million 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.

“Mattel's damages theories reflect a massive overreach,” the lawyers said in the filing. “Tens of millions in MGA profits apparently is not enough; Mattel, through Mr. Wagner, seeks hundreds of millions more in distributions of these same profits from MGA to Isaac Larian.”

MGA attorney Thomas Nolan did not immediately return a call seeking further comment.

Larian previously said MGA will prevail in the damages phase or possibly in the 9th U.S. Circuit Court of Appeals.


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