No surprise here.
Mattel Bratz ruling widely expected, analyst says(AP) Monday's favorable ruling for Mattel Inc. in its lawsuit against MGA Entertainment Inc. was widely expected, an analyst said Tuesday, but the ruling removes one more layer of uncertainty in the $100 million verdict.
On Monday, a federal judge upheld the $100 million verdict in the lawsuit over rights to Bratz doll and confirmed the doll is Mattel property.
A temporary federal receiver will take control of the Bratz brand and MGA's assets. Mattel of El Segundo, Calif., and MGA, Van Nuys, Calif., have been battling over who owns Bratz since 2004. A jury last year awarded Mattel the $100 million verdict for copyright infringement and breach of contract.
A hearing set for May 18 will determine whether the receivership should be made permanent.
"The impact on Mattel's stock should be minimal, since this ruling was anticipated by most investors and the jury verdict was already known," said BMO Capital Markets analyst Gerrick Johnson in a note to investors. "Any reaction is likely to be positive, though, as one more layer of uncertainty has been removed."
Read more on Mattel and Bratz.
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