by Christopher Freeburn | November 8, 2013 11:18 am
Hasbro (HAS) will have to pay a Georgia company millions after underpaying royalties for a popular line of toy guns.
An arbitrator awarded Johnson Research and Development $73 million in unpaid royalties. The company and its founder claimed that Hasbro failed to pay all royalties due on certain Nerf toys between 2007 and 2012, the Atlanta Journal Constitution noted.
An attorney representing Johnson Research expressed satisfaction with the decision, noting that “we got everything we ask for.”
Johnson Research had agreements with Hasbro covering the Nerf N-Strike and Dart Tag brands, as well as an earlier agreement under which he was to receive royalties linked to the Super Soaker line of water guns.
The latter agreement was the subject of a U.S. District Court lawsuit for breach of contract, filed in February.
The Super Soaker — created by Johnson Research founder Lonnie Johnson in 1982 — was one of the most popular toys of the 1990s, including being America’s best-selling toy from 1991-92.
Shares of Hasbro slipped slightly in Friday morning trading.
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