Surprisingly, Mattel, the toy manufacturer, is being sued by UCLA Children’s Hospital for breaching a $49 million pledge, and is embroiled in a legal battle over the matter. Mattel’s dedication to helping the hospital is currently being questioned, even though the company has made an astounding $1.3 billion in profits over the last three years.
In 2017, Mattel—the company best known for toys like Barbie, Hot Wheels, and Fisher-Price—promised to donate $49 million to UCLA Children’s Hospital in order to build a new tower. In the present, UCLA claims the toymaker has not lived up to this promise, and as a result, they have resorted to legal action to force Mattel to fulfill their obligation.
A UCLA representative apologized for filing a lawsuit, stressing that the school had made several earnest attempts to settle the dispute amicably. UCLA claims that they have no choice but to take legal action in light of Mattel’s unilateral abandonment of the new tower project, notwithstanding these efforts.
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The core of the dispute revolves around the halted construction of the ‘new tower’ on the hospital premises. According to Mattel, the money they have pledged was intended especially for this project. UCLA, on the other hand, contests these allegations, calling them flimsy justifications for Mattel to back out of their agreement.
The toy manufacturer and the children’s hospital have a long-standing relationship that spans several decades. The “Mattel Children’s Hospital” was founded in 1998 as a result of Mattel’s $25 million pledge to the UCLA Foundation for the construction of a new hospital. In 2017, Mattel committed an extra $49 million over a 12-year period, extending this partnership.
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Despite an initial $2 million payment in 2017, Mattel’s financial troubles led them to request a temporary suspension of scheduled payments in 2018. Notably, the company reported substantial profits in subsequent years, with a significant boost attributed to the success of the Barbie movie.
Surprisingly, Mattel told UCLA in 2021 that of the $49 million promised, only $10 million would be donated—$2.5 million of which would go toward toys. UCLA contends that this decision has inflicted ‘significant financial injury’ on the children’s hospital.
Both parties have issued statements, with UCLA expressing hope for an alternative resolution through respectful dialogue. Mattel, on the other hand, maintains that UCLA unilaterally abandoned the new tower plans, absolving them of the obligation to fulfill the 2017 Agreement.
As legal proceedings unfold, the focus remains on the well-being of pediatric patients, echoing a shared interest in the care of children that has defined the more than 25-year relationship between Mattel and UCLA Health.
