Friday, August 3, 2012

Lady Gaga Dolls On Hold for the Holidays

Wikimedia Commons / John Robert Charlton
Lady Gaga (a/k/a Stephanie Germanotta) and her management company were sued by MGA Entertainment Inc., the maker of Bratz toys, over allegedly failing to approve a line of dolls in the singer’s likeness.

MGA is asserting claim for breach of contract in New York State Supreme Court, and is seeking more than $10 million in damages from Lady Gaga, her management company,  California-based Atom Factory, and Los Angeles-based Bravado International Group, a merchandising company.

MGA Entertainment alleges that it agreed to produce dolls in Lady Gaga’s image in December 2011 and paid the company a $1 million fee in anticipation of shipping the products to retailers this summer in time for the holiday selling season.

In April of this year, Bravado Chief Executive Officer Tom Bennett, allegedly told MGA’s chief executive officer Issac Larian that Lady Gaga wanted to delay production and shipping of the dolls until her new album is released in 2013. 

MGA claims that the defendants have continued to withhold final approval in order to delay marketing the dolls until next year and instead sell a licensed Lady Gaga perfume called “Fame.”

“The Defendants’ conduct is egregious, in bad faith and is pretextual, especially in light of the fact that MGA has, among other things, paid Bravado a $1,000,000 advance, agreed to an excessively generous royalty rate, invested millions in the preproduction of the Lady Gaga dolls and put its reputation and goodwill on the line in order to secure distributors and retail shelf space,” MGA Entertainment asserts in the complaint.

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