MGA granted injunction against Fun-4-All

By Dave Gerardi -- Playthings, 5/20/2002 2:42:00 PM

North Hills, Calif.-based manufacturer MGA Entertainment was granted a preliminary injunction against Fun-4-All by the U.S. District Court for the Central District of California on Wednesday, May 8.

The action prohibits New York toymaker Fun-4-All from manufacturing, distributing, advertising and promoting any Bratz products.

In a statement released to the press, MGA claims it terminated a licensing agreement with Fun-4-All due to the latter's breach of contract 'by failing to meet MGA's approval standards among other reasons.' The agreement had called for Fun-4-All to manufacture Bratz plush dolls. MGA declined to be interviewed for this story.

Cases of the dolls had already been shipped to Kmart stores across the country, said Nicole Dowswell, a Kmart spokesperson, but corporate headquarters sent a note to all stores informing them to remove the items and keep them from the shelves on Monday, May 13.

The plush dolls had also appeared on the Web site of Marz Distribution, but were quickly pulled after news of the court action, said a customer service representative for the Sarasota, Fla.-based distributor.

On May 17, Fun-4-All President Scott Bachrach said in a written statement that the company is 'highly confident that we will prevail in this matter,' noting that arbitration of a lawsuit filed by Fun-4-All against MGA for breach of contract and fraud over the Bratz deal will begin in Los Angeles on May 28.

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