Cabbage Patch Kids Court Case Closed For JAKKS Pacific And Wicked Cool Toys

JAKKS Pacific, Inc. JAKK has won a ruling that allows the company to adjust the prices of Cabbage Patch Kids-branded toys.

Bloomberg reported a judge ruled in JAKKS' favor, dismissing a rival's claim that the toymaker interfered with its contract to make Cabbage Patch Kids-branded toys. The judge said JAKKS had the right to slash prices, reduce advertising and flood the market with the dolls.

Meanwhile, JAKKS accused Wicked Cool Toys and former JAKKS executive Jeremy Padawer of conspiring to persuade the brand's owner, Original Appalachian Artworks, to give JAKKS' license for the toys to Wicked Cool Toys. The allegations were adamantly denied, and they countersued, "saying JAKKS used illegal tactics to tarnish the Cabbage Patch Kids brand, costing at least $4 million in sales."

Anil Singh, state judge, dismissed the counterclaims, "saying the move to cut prices and flood the market may have been financially harmful to Wicked Cool but didn't rise to the level of illegal conduct, 'especially in light of the economic motivations.'"

At the time of writing, shares of JAKKS rose 0.60 percent to $8.42.