MGA Can Sell Bratz Through 2009

MGA has won a small victory in their case to keep the Bratz line alive.

RIVERSIDE, Calif.—MGA Entertainment won some breathing room Wednesday as a U.S. District Court judge ruled that it may continue to sell its Bratz dolls through the end of 2009, pending an appeal of the decision awarding control of the line to rival Mattel.

At the same time, U.S. District Judge Stephen Larson appointed a forensic auditor and ordered MGA and its CEO Isaac Larian to surrender financial and corporate records, including audited financial statements for the last three years, asset transfers, company emails and forensic images of some hard drives and PDAs.

Larson held Mattel’s request to appoint a receiver for MGA in abeyance pending the forensic audit.

Larson stayed the permanent injunction sought by Mattel to block further sale of the dolls by MGA. “Specifically, retailers and distributors will be permitted to purchase the Spring and Fall 2009 lines of Bratz and Bratz-related products from MGA and MGA licensees, up to and including December 31, 2009,” the court’s order stated.

“We will still seek an expedited appeal of the court’s injunction and seek to extend the stay until the conclusion of our appeal,” MGA’s Larian said in a late-night statement emailed to reporters.

Last year Mattel won the 4-year-old case in which it claimed a designer still under its employ had developed the Bratz property for MGA.