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 to allow its wildly popular 5 SURPRISE range of products to resume sale immediately across California.
“This decision is a tremendous win for ZURU, and I hope this ruling encourages other smaller companies to innovate even if large incumbents try to stifle them”
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 rival that routinely uses litigation in an attempt to stifle legitimate competition in the market. After considering extensive testimony and briefings, the court found this week that MGA failed to demonstrate a likelihood of success on the merits of its case against ZURU’s 5 Surprise line. As a result, the judge 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 encourages other smaller companies to innovate even if large incumbents try to stifle them,” 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 in-store and online of the 5 SURPRISE line, which includes Mini Brands, Unicorn Squad and Dino Strike.
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