SAN FRANCISCO (AP) -
A federal appeals court has tossed out $172 million in damages Mattel Inc. was ordered to pay the maker of Bratz dolls.
The 9th Circuit U.S. Court of Appeals on Thursday tossed out a stunning April 2011 jury verdict in favor of MGA. The verdict came in a case started by Mattel's lawsuit accusing MGA Entertainment Inc. of stealing its idea for the popular dolls.
The jury rejected Mattel's claims and instead sided with MGA's counterclaims that it was the victim of trade secret theft.
The appeals court ruled that MGA's counterclaims should not have reached the jury because the allegations weren't related to Mattel's original lawsuit.
The appeals court did say MGA was still entitled to $136 million in legal fees it spent fighting Mattel's lawsuit.