US District Judge Stephen Larson has issued an order stating that the firm's temporary receivership had ended, and that he would not appoint a permanent receiver.
As a result of the ruling, sole management of the company has returned to Isaac Larian, founder and CEO.
The judge installed the receiver, Patrick Fraioli, last month as a monitor for the Bratz assets, with Mattel responsible for paying all related costs.
In a hearing that took place on Monday May 18th, Judge Larson stated: “There can’t be two heads to one company. It’s clear to the court that MGA needs to be run by Isaac Larian.”
MGA was also denied the rights to continue making and selling Bratz dolls until its case is heard by the Ninth U.S. Circuit Court of Appeals. The firm has stated it will immediately file an emergency motion on this issue.
In the May 18th hearing, MGA’s lawyer also disputed Mattel’s logic in wanting to place Tim Kilpin in charge of the Bratz line in 2010.
Kilpin was removed from Mattel’s girls division for inadequate performance and while heading up the girls division, he wrote documents about how MGA out-executed Mattel in the tween market.
Kilpin’s documents essentially said that Mattel needed to come up with a war plan to kill Bratz.
In a statement, Mattel said: "Mattel is gratified that the Court is ordering the prompt transition of Bratz to Mattel and has rejected MGA's requests for delay.
"Mattel is also pleased that the Court has recognized the continued need to protect Mattel's rights in Bratz by continuing the appointment of Patrick Fraioli as the Court Officer responsible for ensuring that Bratz is turned over to Mattel.
"While his title has changed from Temporary Receiver to Monitor, he still also remains responsible for collecting Bratz profits from MGA for Mattel's benefit, monitoring MGA's financial transactions and otherwise monitoring MGA's compliance with the Court's orders.
"As was established previously, there is evidence that MGA and its CEO, Isaac Larian, have attempted to thwart the Court's rulings and last summer's jury verdict in favor of Mattel."