UC Regents file lawsuit against Mattel for alleged violation of $50M contract
A UCLA Health building is pictured. UC Regents filed a lawsuit last week against Mattel, Inc. – the toy company – for allegedly breaching its $50 million contract. (Daily Bruin file photo)
The UC Regents filed a lawsuit against Mattel, Inc. last week in light of a $50 million pledge to the UCLA Mattel Children’s Hospital that was allegedly never fulfilled.
In 2017, Mattel – the creators of Barbie, Hot Wheels and American Girl – pledged $50 million in annual installments over the span of 12 years in exchange for UCLA renaming the hospital with the corporation’s name and including its logo in the hospital’s signage.
“Mattel’s gift was expected to enhance and expand pediatric care at UCLA Mattel Children’s Hospital and to support global health programs through research partnerships and physician exchanges,” a spokesperson for UCLA Health said in an emailed statement.
According to the lawsuit – The Regents of the University of California and The UCLA Foundation v. Mattel, Inc. – the original agreement included $2 million in the first year, $3 million in the second year, $5 million over eight installments in years three through 10 and $2 million paid in two installments over the last two years of the contract.
Mattel paid the promised amount in 2017 but only paid $1 million out of the $3 million owed in 2018, and in August of 2018, it called for a three-year pause on payments because of the company’s $1.05 billion net loss in 2017, according to the lawsuit.
The UCLA Health spokesperson said in the statement that in 2018, UCLA Health agreed to Mattel’s request for the temporary suspension of scheduled payments on the pledge. They added in the statement that the corporation’s breach of contract has caused distress for the hospital.
“UCLA Health is disappointed that the company since then has repeatedly declined to renew the payments, including in 2021 when the Mattel, Inc. reported net income of more than $900 million,” they said in the statement.
According to the lawsuit, the UCLA Foundation and the regents have accused Mattel of a breach of contract and are seeking a declaration that would require Mattel to fulfill all amounts pledged under the 2017 agreement.
“We are hopeful that an alternative resolution can be found through dialogue grounded in respect for a relationship of more than 25 years and in pursuit of a shared interest: the care and well-being of children,” the spokesperson said in the statement.
