ZURU Prevails Over MGA Entertainment As Court Reverses Injunction in California 5 Surpise Dispute
LOS ANGELES, CA — ZURU, the innovative New Zealand-owned global toy and consumer products company, announced today a California Superior Court judge ruled in ZURU’s favor, dissolving a temporary restraining order and denying a preliminary injunction thereby allowing its wildly popular 5 SURPRISE range of products to resume sale immediately across California.
Late last year, a California Superior Court-judge issued a temporary restraining order directing retailers across the state to discontinue the sale of ZURU’s surprise toy line as it considered an anti-competitive motion from MGA Entertainment, a competitor that routinely uses litigation in an attempt to stifle legitimate competition in the market. After considering extensive testimony and briefings, the court found that MGA failed to demonstrate a likelihood of success on the merits of its case against ZURU’s 5 Surprise line and as a result, not only dissolved the earlier issued temporary restraining order but also denied the preliminary injunction MGA sought to obtain.
“This decision is a tremendous win for ZURU and I hope this ruling gives confidence to other smaller organizations to keep coming out with brilliant innovation even if larger players try to stifle,” said Anna Mowbray, Chief Operating Officer of ZURU. “We took a stance against anti-competitive bullying as demonstrated in this case and prevailed. It’s a win for ZURU and the industry.”
ZURU will move to recover losses related to the temporary restraining order from MGA under an $850,000 bond the court required the company to post.
The victory, which comes as home-bound families will increasingly look for stimulating toys and playtime, allows California retailers to resume sales instore and online of the 5 SURPRISE line, which includes Mini Brands, Unicorn Squad and Dino Strike.
About ZURU
ZURU is a disruptive and award-winning company that designs, manufactures and markets innovative toys and consumer products. Inspired by kids and imaginative play, ZURU is one of the fastest growing toy companies in the world, reaching as high as #6 among US toy companies, and is known for their agility, creativity and new-age manufacturing techniques. The company that started in New Zealand now has a significant global presence and sells product to most major retailers in over 120 countries.
ZURU has delighted millions of families all over the world with brands such as Bunch O Balloons™, X-Shot™, Rainbocorns™, Robo Alive™, Smashers™, 5 Surprise™ and Metal Machines™ as well as through partnerships with entertainment properties, including Nickelodeon, Disney, Universal Studios and DreamWorks. With a strong commitment to the community, ZURU supports Captivating International, local China orphanages and also student development programs in Asia and in New Zealand. ZURU will continue to pave new ways for kids to play and focus on reimagining what this looks like every day. For more information, visit www.zuru.com and follow the company on Facebook @ZURUToys or Twitter @ZURUToys.
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Sarah Gumina/Janis Van Tine
