The University of California, Los Angeles is suing toy maker Mattel, claiming it donated $49 million to the children’s hospital before attempting to withdraw.
It filed a lawsuit last week accusing the company behind popular toys such as Barbie, Hot Wheels and American Girl of breach of contract. Los Angeles Times.
The two organizations have worked together since 1998, when the toy manufacturer donated $25 million to the UCLA Foundation to help build the medical facility on the Westwood campus, which was named in the company’s honor.
UCLA claims that in 2017, Mattel agreed to donate $49 million over 12 years to the UCLA Mattel Children’s Hospital.
It was alleged that Mattel tried to offer “just a few million dollars, plus a bunch of Barbie dolls, Hot Wheels cars and other in-kind donations” instead of fulfilling the full promise. It is seeking the original amount and damages for financial hardship.
University of California, Los Angeles sues toy maker Mattel, claiming to donate $49 million to children’s hospital before trying to pull out
UCLA filed a lawsuit last week, accusing the company behind popular toys like Barbie, Hot Wheels and American Girl of breach of contract, according to the Los Angeles Times
It was alleged that Mattel tried to offer “just a few million dollars, plus a bunch of Barbie dolls, Hot Wheels cars and other in-kind donations” instead of fulfilling the full promise
The lawsuit was filed on behalf of UCLA and the UCLA Foundation and accuses Mattel of reneging on the agreement reached five years ago.
The company reportedly pledged to donate $49 million over 12 years, with the university agreeing to incorporate the toy manufacturer’s logo into signage for the hospital.
The lawsuit states that this corporate branding was an unprecedented step for the university facility.
Mattel was said to have donated $2 million for the first time in 2017, as agreed, but only raised a third of what it would do the following year.
“Mattel paid only $1 million of the promised $3 million,” the court filing said.
“That $1 million payment was the last one Mattel made.”
The lawsuit alleges that Mattel CEO Ynon Kreiz told UCLA in writing in 2018 that the manufacturer’s board had halted three years of donations due to the company’s poor financial position. Mattel had suffered more than $1 billion in losses in 2017.
UCLA claimed that when donations were set to resume in 2021, the company wrote that it planned to provide only an additional $10 million instead of the $46 million remaining under the original pledge.
Mattel reportedly clarified that only $2.5 million would be cash and the remainder would consist of $5 million in in-kind marketing and $2.5 million in toys.
“As a last resort, UCLA Health has taken legal action to stop Mattel, Inc. to fulfill its $49 million promise under a 2017 contractual agreement. Litigation is not the university’s preferred route, a UCLA spokesperson said.
“UCLA Health has made multiple good faith efforts to resolve this matter through meaningful dialogue, and those efforts were unsuccessful.
The lawsuit alleges that Mattel CEO Ynon Kreiz told UCLA in 2018 that the manufacturer’s board had imposed a three-year pause on donations due to the company’s poor financial position.
“In 2018, UCLA Health agreed to Mattel, Inc.’s request. to temporarily suspend scheduled payments for the pledge.
“UCLA Health is disappointed that the company has repeatedly declined to renew payments since, including in 2021 when Mattel, Inc. reported net income of more than $900 million.”
But Mattel disputed the claims and the conditions for the pledge were not met by UCLA.
“Mattel values its long-standing relationship with UCLA Health and we are proud to have UCLA Mattel Children’s Hospital bear our company’s name,” a spokesperson for the toy maker said.
It added that the donation was specifically for the construction of a new tower at the children’s hospital.
Mattel claimed that because the university had “unilaterally abandoned its plans to build its new hospital tower,” the terms of the pledge had not been met.
“We are open to continuing dialogue with UCLA Health in the same spirit of collaboration that has been a hallmark of our relationship for decades,” it added.
The company also emphasized that it continues to support the children’s hospital through “fundraising, toy, cash and in-kind donations, and community activations” as it is “important to the company.”
UCLA and Mattel have been working together since 1998 and thousands of children have been treated at the hospital since then. The company delivered all agreed upon initial donations of $25 million in 2004.
It hosted an annual Party on the Pier fundraiser for the hospital at Santa Monica Pier, which reportedly raised more than $1 million by 2022.
Mattel has made more than $1.3 billion in profits since 2021, according to financial reports.
DailyMail.com has contacted Mattel and UCLA for comment.