Federal Lawsuit against JAKKS Pacific(R) by WWE to Be Dismissed on Multiple Grounds Including Statute of Limitations
MALIBU, Calif.–(BUSINESS WIRE)–Dec. 20, 2007–JAKKS Pacific, Inc. (NASDAQ:JAKK), reports that the federal judge in the action captioned World Wrestling Entertainment, Inc. v. JAKKS Pacific, Inc., et al., 1:04-CV-08223-KMK, commenced in the U.S. District Court for the Southern District of New York in October 2004, held a conference call yesterday to explain the grounds for his dismissal of all of WWE’s claims against JAKKS, its officers and other defendants. The federal judge stated that he had dismissed WWE’s federal RICO claims on multiple grounds, including: (1) that WWE’s claims were barred by the statute of limitations because WWE was on inquiry notice of these claims no later than the summer of 1998, and (2) that WWE has not established any cognizable RICO injury. The federal judge indicated that he was dismissing WWE’s state law claims for lack of federal jurisdiction. The judge also announced that he had denied WWE’s motion for reconsideration of the federal court’s March 31, 2006 decision dismissing WWE’s federal antitrust claims under the Sherman Antitrust Act. These rulings, which dispose of all of the claims pending in federal court, will be explained in a comprehensive decision the federal judge intends to issue shortly.
“The dismissal by the Federal Court of the action brought by WWE is a decisive legal victory for JAKKS and the other defendants. All of WWE’s claims in the federal forum chosen, with great fanfare by WWE, including RICO, Robinson-Patman and Sherman Antitrust, have now been thrown out of court by a Federal judge. The Court is expected to render its comprehensive opinion by Friday and it remains to be seen how the opinion, which will address statute of limitations, injury and other issues, impacts WWE’s state law claims. We eagerly await the Court’s comprehensive decision,” said Jack Friedman, Chairman and Chief Executive Officer, of JAKKS Pacific, Inc.
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) is a multi-brand company that designs and markets a broad range of toys and consumer products. The product categories include: Action Figures, Art Activity Kits, Stationery, Writing Instruments, Performance Kites, Water Toys, Sports Activity Toys, Vehicles, Infant/Pre-School, Plush, Construction Toys, Electronics, Dolls, Dress-Up, Role Play, and Pet Toys and Accessories. The products are sold under various brand names including JAKKS Pacific(R), Play Along(R), Flying Colors(R), Creative Designs International(TM), Road Champs(R), Child Guidance(R), Pentech(R), Trendmasters(R), Toymax(R), Funnoodle(R), Go Fly a Kite(R), Color Workshop(R), JAKKS Pets(TM) and Plug It In & Play TV Games(TM). JAKKS and THQ Inc. participate in a joint venture that has worldwide rights to publish and market World Wrestling Entertainment video games. For further information, visit www.jakks.com.
This press release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS’ products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The forward-looking statements contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release. (C) JAKKS Pacific, Inc. All Right Reserved.