Topline:
UCLA Health is accusing Mattel of backing out of a $49 million donation pledge for the children's hospital that bears the name of the toymaker.
Why it matters: It was supposed to be the largest donation ever made to UCLA Mattel Children’s Hospital, according to a statement at the time.
Why now: “Litigation is not the University’s preferred path,” a UCLA Health spokesperson said in a statement. “UCLA Health made multiple good-faith attempts to resolve this matter through meaningful dialogue, and those efforts were unsuccessful.”
The backstory: Mattel, the El Segundo-based company behind Barbie, Hot Wheels, and Fisher Price, announced the multi-million dollar pledge in March 2017.
What's next: UCLA and Mattel’s relationship goes back decades, and both sides said they’re open to continuing the conversation about this issue.
Go deeper: ...to learn more about the lawsuit.
UCLA Health is accusing Mattel of backing out of a $49 million donation pledge for the children's hospital that bears the name of the toymaker.
Mattel, the El Segundo-based company behind Barbie, Hot Wheels, and Fisher Price, announced the multi-million dollar pledge in March 2017. It was supposed to be the largest donation ever made to UCLA Mattel Children’s Hospital, according to a statement at the time.
But UCLA Health claims in a lawsuit that Mattel never finished paying their donation, which was supposed to go toward expanding the hospital in Westwood and supporting children’s health programs around the world.
The company had asked to temporarily suspend pledge payments in 2018, which UCLA Health agreed to. However, according to UCLA Health, Mattel has repeatedly declined to start the payments back up in the years since, including in 2021, when the company reported a net income of more than $900 million.
“Litigation is not the University’s preferred path,” a UCLA Health spokesperson said in a statement. “UCLA Health made multiple good-faith attempts to resolve this matter through meaningful dialogue, and those efforts were unsuccessful.”
Mattel may be raking in even more revenue this year after the Barbie movie, which earned more than $1 billion worldwide.
The toymaker's net sales for the third quarter of 2023 jumped to $1.92 billion, according to the company’s recent earnings release. Ynon Kreiz, the chairman and CEO of Mattel, acknowledged in that release the company financially benefited from Greta Gerwig’s summer blockbuster, calling it a “global cultural phenomenon.”
However, in a statement, Mattel said it’s not about the donation money, it’s about where it goes.
According to the company, the donation was specifically for the construction of a new hospital tower. Mattel claims under their pledge agreement, UCLA Health cannot decide to use the money for anything else, at least without the toymaker's support.
“UCLA Health has unilaterally abandoned its plans for the construction of its new hospital tower,” a Mattel spokesperson said in a statement. “As a result, the conditions for the pledge under the 2017 agreement have not been met.”
UCLA and Mattel’s relationship goes back decades, and both sides said they’re open to continuing the conversation about this issue.
In the meantime, Mattel said it has still supported the children’s hospital with activities, fundraising, and toys, including sponsoring a “Party on the Pier” event a few weeks ago.
