Judge Nixes Mattel's Fraudulent Transfer Suit V. MGA

Law360, New York (April 18, 2011, 7:13 PM EDT) -- A California state judge on Thursday dismissed Mattel Inc.'s lawsuit accusing rival MGA Entertainment Inc. of draining more than $400 million from its coffers to avoid paying the toy giant if Mattel wins the war over the rights to Bratz dolls.

California Superior Court Judge Mel Red Recana threw out Mattel's suit, agreeing with a federal court judge who rejected the claims in August 2010 because they did not fall under the California Uniform Fraudulent Transfer Act.

The decision did little to quell the companies' bitter...
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