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Receiver overseeing Bratz toy maker is removed

MGA Entertainment founder Isaac Larian is again sole head of MGA, which must still give up the lucrative line of dolls to archrival Mattel.

May 23, 2009|David Colker

The temporary receiver put in place to oversee MGA Entertainment Inc. has been removed by the federal judge who put him there last month, making company founder Isaac Larian again the sole head of the toy-making outfit.

But it's a diminished kingdom.

The order issued late Thursday by U.S. District Court Judge Stephen Larson did not alter the fact that Van Nuys-based MGA has to give up by far its most prominent product line -- the Bratz dolls it introduced in 2001.

The attorney who had the role of receiver, Patrick Fraioli, was appointed to direct the transfer of Bratz assets to MGA's archrival, Mattel Inc.

In the meantime, the judge's order said, MGA could continue to sell 2009 Bratz products through Jan. 21, 2010.

Mattel issued a statement Friday saying it was "gratified that the court is ordering the prompt transition of Bratz."

MGA's statement said it would file an emergency motion in an attempt to get the right to manufacture and sell the dolls until its case is heard in appeals court.

Last year El Segundo-based Mattel won a much-watched copyright battle over the dolls in which a jury found that the Bratz line was created by a Mattel designer who was working under exclusive contract.

The jury also found that Larian played a role in the contract breach.

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david.colker@latimes.com

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