Judge dismisses Mattel lawsuit related to Bratz case

The lawsuit accuses MGA of fraudulently transferring millions in funds to avoid paying anticipated judgements.
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The Associated Press has reported that Los Angeles Superior Court Judge Mel Red Recana filed the order to dismiss the suit.

Mattel filed its complaint last September in the lead up to retrial of the long-running battle over who owns the Bratz brand.

Mattel's lawsuit alleged that MGA transferred $430 million in dividends and other assets to MGA boss, Larian, his family members and a number of trusts between 2004 and 2008 to make the company appear insolvent and prevent MGA's creditors, including Mattel itself, from cashing in.

The suit also alleges that Larian asked friends and family members to buy MGA's debt from a syndicate of banks, which was collecting all revenue MGA received to secure an earlier credit agreement.

The resulting entity, Omni 808, subsequently lent money to MGA and was intended to further prevent Mattel from collecting any judgments, the lawsuit alleges.

Jurors are currently deliberating on claims from both sides in the retrial of the Bratz ownership case that lasted three months.

On Friday, Larian said he would sue Mattel for his company's legal fees in the case, as well as for malicious prosecution and defamation.

Michael Zeller, an attorney for Mattel, however, said it had filed the state case to protect its ability to collect on any judgment.

"The court dismissed the filing as premature and has left open Mattel's right to refile the case at an appropriate time in the future," explained Zeller.

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