BRATZ/BARBIE: Mattel could seek $1.6billion

Katie Roberts

By Katie Roberts

July 24th 2008 at 11:14AM
BRATZ/BARBIE: Mattel could seek $1.6billion

Witness could claim Mattel is owed $1.6billion in damages in latest phase of trial.

MGA Entertainment has asked a judge to block a testimony from accountant Michael Wagner, who is expected to claim Mattel is owed $1.6 billion in lost profits and other damages from the Bratz dolls.

MGA Entertainment filed the motion after a jury ruled last week that the designer of the popular dolls conceived the idea while working for Mattel. The jury will decide possible damages during a separate proceeding that began yesterday.

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.

Company lawyers cite Wagner as saying 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.

Wagner is also cited in the documents as saying MGA’s CEO Isaac 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."