Documents: Mattel could seek $1.6B in Bratz case

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 Los Angeles-based MGA and its CEO 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.

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

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.

In its court filing dated July 18, MGA targets the expected testimony of accountant Michael Wagner.

Company lawyers cite Wagner as saying in an expert report filed Feb. 11 that 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, such as key chains, alarm clocks and toothpaste.

Wagner is also cited in the documents as saying 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."