Mattel Issues Statement on Recent Circuit Court Decision, Says Has Taken $137.8M Reserve
Mattel (NYSE: MAT) today issued the following statement regarding Ninth Circuit Court of Appeals recent decision.
We are pleased that the Ninth Circuit Court of Appeals agreed with Mattel that the verdict and damages on MGA's toy fair claims must be reversed, and the claims must be dismissed by the District Court. The Ninth Circuit's decision vacates the district court's judgment awarding MGA approximately $172 million, consisting primarily of compensatory and punitive damages, for the claims MGA made arising out of conduct at toy fairs. Consistent with the Court's affirmance of the award of fees and costs against Mattel arising out of the separate copyright claims, Mattel has taken a reserve of $137.8 million with respect to the fourth quarter of 2012 to cover these fees and costs.
While MGA can in theory bring a new lawsuit based on its toy fair claims, we are confident that such a lawsuit will be barred by the statute of limitations. We look forward to the speedy and final resolution of this dispute, and will continue to focus our efforts on successfully competing in the marketplace.
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