Looks like MGA Entertainment is the latest company with the lawsuit bug. The toy firm that makes the Bratz line of dolls announced today that it has sued Lady Gaga, her management firm (Atom Factory) and merchandising firm Bravado International Group for delaying approval of a Lady GaGa doll line.
According to Bloomberg News, MGA Entertainment is accusing Gaga of breach of contract and seeking over $10 million in damages. According to the toy firm's complaint, the contract agreed to produce dolls in the pop star's image in December 2011 at Bravado's "request and insistence" in order to ship the dolls to retailers this summer, ahead of the holiday selling season.
In April, Bravado told MGA that Gaga asked to delay production and shipping until her new album release in 2013. MGA had estimated $28 million in revenues for the fall 2012 retail season from the Lady GaGa dolls alone. In the complaint, MGA stated that they paid "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."
Do you think this lawsuit is fair? Let us know in the comments below!
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