Mattel Inc. has filed suit against a former employee who they claim violated his employment contact with the company by helping a rival. Mattel says that the former employee misappropriated intellectual property by secretly working for a competitor. Mattel will not say which competitor the employee worked for, but sources close to the situation speculate that it was MGA Entertainment.
See "Mattel Says Ex-Worker Secretly Helped Rival", Los Angeles Times, April 28, 2004