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Bratz maker fighting testimony on damages

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From the Associated Press

The maker of Bratz dolls has asked a judge to block testimony from an expert witness expected to claim that Mattel Inc. is owed about $1.6 billion in lost profit 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 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.

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

Mattel lawyer John Quinn declined to comment on the figures.

In a court filing dated Friday, MGA targeted the expected testimony of accountant Michael Wagner.

MGA lawyers cite Wagner’s report, filed Feb. 11, that MGA owed Mattel about $234 million from profit generated from the sale of Bratz dolls and $366 million from Bratz-branded goods, such as key chains, alarm clocks and toothpaste.

Wagner said Larian should pay Mattel $250 million for his share of MGA profits and an additional $773 million for his total interest in the Bratz product line, the documents say.

MGA contends Wagner’s claims are “overlapping and duplicative” because they seek the same damages from the company and Larian himself, according to the filing.

“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 Tom Nolan did not immediately return a call seeking further comment.

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

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