Hospital Claims Mattel Reneged on Donation
The University of California and the UCLA Foundation have filed a lawsuit against Mattel, accusing the company of breaching its contract by not fulfilling its $49 million pledge to support UCLA’s children’s hospital. Mattel, the renowned toy company behind popular brands like Hot Wheels, Fisher-Price, and Barbie, had promised the donation in 2017. However, the hospital now alleges that Mattel has failed to deliver the money, causing significant financial harm.
Dispute Over Pledge Conditions
According to the lawsuit, Mattel made the “inexplicable decision” to renege on its pledge a few years after making it. The company now wants to offer the pediatric hospital a significantly reduced amount, along with in-kind donations such as Barbie dolls and Hot Wheels cars. The regents of the University of California and the UCLA Foundation are seeking the full $49 million originally pledged, as well as damages for the financial difficulties caused by Mattel’s withdrawal from the giving plan.
UCLA Health Takes Legal Action
UCLA Health, the medical arm of the university, stated that legal action was a last resort after unsuccessful attempts to resolve the matter through dialogue. UCLA Health spokesperson Phil Hampton expressed hope for a resolution through respectful dialogue that prioritizes the well-being of children. The relationship between Mattel and UCLA’s medical arm dates back to 1998 when Mattel pledged $25 million to support the construction of a children’s hospital. In exchange, the hospital was named UCLA Mattel Children’s Hospital.
Mattel Claims UCLA Abandoned Construction Plans
Mattel, in response to the lawsuit, disputed UCLA’s claim of breaching its contractual obligations. The company argued that its donation was specifically intended for the construction of a new hospital tower, which UCLA allegedly abandoned. Mattel expressed openness to continuing a dialogue with UCLA Health but maintained that the conditions of the 2017 pledge were not met due to UCLA’s actions.
Financial Impact on the Hospital
The lawsuit claims that Mattel’s decision has caused significant financial harm to the children’s hospital. In addition to losing out on the promised cash, the hospital contends that financing the construction of a new tower has become more challenging. The failed pledge has also jeopardized potential sponsorship deals and damaged the hospital’s fundraising ability by showing little consequence for failing to fulfill promises.
Years of Negotiations Yield No Resolution
The lawsuit reveals that UCLA attempted negotiations with Mattel over the past two years but was dissatisfied with the results. Despite the tension between the toy company and the university, the annual Mattel-sponsored Party on the Pier fundraiser for UCLA’s children’s hospital proceeded as scheduled. The lawsuit was filed just four days after the event.
By taking legal action, UCLA aims to compel Mattel to honor its $49 million pledge and rectify the financial harm caused by its withdrawal from the giving plan.