Mattel Says Ex-Worker Secretly Helped Rival

Mattel Inc. said it filed suit against a former employee, accusing him of working for a rival and violating his employment contract with Mattel.

The suit charges that Carter Bryant secretly worked for a competitor while still employed by the El Segundo-based toy maker and that he misappropriated intellectual property, Mattel said.

Mattel declined to comment on which competitor Bryant worked for. Sources close to the situation, however, said that Bryant worked with MGA Entertainment, a privately held maker of Bratz fashion dolls. Bratz dolls have eaten into sales of Mattel’s Barbie doll.

MGA Chief Executive Isaac Larian said the company had not seen the lawsuit and therefore could not comment on it.

Mattel’s shares closed down 35 cents at $16.88 on the NYSE.

From Reuters