Court Pares Claims Over Magnetix Toy Maker Merger

Law360, New York (May 19, 2009, 12:00 AM EDT) -- Magnetix toy maker Rose Art Industries Inc. may pursue declaratory judgment that it isn't required to indemnify acquirer Mega Bloks Inc. for roughly five pending product liability suits, but it cannot do so for the 17 settled cases and all future Magnetix-related claims, a federal judge has ruled.

Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York also tossed Mega Bloks' counterclaims alleging the plaintiffs breached their contract in failing to provide adequate disclosures about the Magnetix product liability...
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