Lady Gaga and the Bratz Dolls Embroiled in Breach of Contract Suit
Posted on Jan 01, 2016
In a recent filing, MGA Entertainment, Inc., has sued pop star Lady Gaga, real name Stefani Germanotta, and her management company, alleging New York breach of contract. MGA Entertainment is the maker of the popular Bratz line of dolls. The company is seeking more than $10 million in damages.
In its lawsuit, MGA asserts the following:
- That a contract existed between the company and the pop star wherein the company would produce dolls in Lady Gaga’s image.
- The alleged contract was entered into in December of 2011.
- In return for the ability to produce the Lady Gaga dolls, the company would pay a $1 million fee in anticipation of being able to ship the products to retailers this summer.
- By shipping the dolls during the summer, the products would be available for sale during the holiday retail season.
- In April of 2012, Lady Gaga’s management team requested that production and shipment of the dolls be delayed, in order to coincide with the release of the star’s 2013 album.
- To ensure that production and shipment would be delayed, the defendants have continuously withheld final approval of the dolls.
- MGA has paid the $1,000,000 advance and invested millions of dollars in the preproduction of the dolls.
- MGA had agreements in place with six or more distributors for the dolls and orders coming from a minimum of 10 countries.
- MGA will suffer damage to its reputation and goodwill by failing to live up to its promises to retailers to deliver the dolls this summer.
- MGA anticipated $28 million in revenue from selling the dolls during the fall 2012 retail season.
In Lady Gaga’s defense, a representative for the singer released a statement claiming that the dispute is rightfully between MGA and Universal Music Group’s merchandising company, and there is no reason for Lady Gaga to be involved in the lawsuit. A spokesman for Universal Music Group said the lawsuit is without merit.
MGA requested that New York State Supreme Court Justice Jeffrey Oing order the management company and singer to immediately approve the sample dolls. Unfortunately for the company, Oing denied the request. The parties are scheduled to return to court on August 29th.
To learn more about breach of contract matters in New York, contact a New York business litigation attorney today at (888) 497-3410 for a consultation.