A federal court has ruled that toymaker Mattel (NASDAQ:MAT) will not have to pay MGA Entertainment $172 million.
The case concerned an accusation of trade secret theft regarding the popular Bratz dolls, the Los Angeles Times is reporting. Thursday’s ruling said key parts of MGA’s claim should have been dismissed before trial.
In 2001, MGA launched the popular Bratz line of dolls. Mattel quickly sued, claiming that Bratz designer Carter Bryant initially developed the look and appearance of the doll while working for Mattel in 1999. While Mattel won the 2008 case, it was overturned by a 2010 appeals court ruling.
In a 2011 retrial, a jury found that MGA didn’t steal trade secrets from Mattel, but rather that Mattel had stolen from MGA. While the latest appeals court ruling did go in Mattel’s favor, it allowed MGA an award of about $137 million, down from the original $310 million award the company won in the 2011 retrial.
MGA’s attorney’s said the company would pursue another case against Mattel.