8:07am PT by Eriq Gardner
Viacom Hits Toy Giant With Lawsuit Over Financing of Nick Jr. Series
In a lawsuit filed on Monday, Viacom says it lived up to its end of the bargain by contributing $5.2 million for a TV series based on MGA Entertainment's line of Lalaloopsy dolls, but that MGA failed to deliver $3.5 million on its end.
The complaint was filed in California federal court and claims MGA, best known for the Bratz doll line, has breached its contract.
Viacom, which often partners with toy companies (see its latest deal with Hasbro), says it arrived at a co-finance agreement with MGA in 2012. Afterwards, Viacom launched the Lalaloopsy series on Nickelodeon and broadcast 52 episodes on Nick Jr.
The terms of the deal had MGA paying $9 million in three installments — $2 million in year one, $3 million in year two and $4 million in year three. Viacom says it is missing most of the final year's payment.
Late last month, MGA made a $500,000 minimum guarantee payment. "However, MGA has failed to pay the remaining $3.5 million to Viacom that is due under the Co-FInance Agreement," adds the complaint.
Represented by attorney Richard Kendall, Viacom now seeks damages. MGA hasn't yet responded.