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The on-again, off-again settlement between O’Melveny & Myers and MGA Entertainment Inc. of a $10.2 million billing dispute is on again. Settlement discussions appeared to be falling apart after O’Melveny attorney Kevin Rosen, a partner at Gibson, Dunn & Crutcher, told Los Angeles County, Calif., Superior Court Judge Elizabeth White on Nov. 7 that it was "fish-or-cut-bait time" for the deal. On Nov. 15, O’Melveny spokeswoman Sonja Steptoe issued a statement on behalf of the firm: "A mutually acceptable settlement of O’Melveny & Myers v. MGA Entertainment Inc.…has been reached, and O’Melveny & Myers LLP has agreed to accept a compromise sum from MGA Entertainment Inc. in settlement of O’Melveny’s claim for unpaid fees." MGA spokeswoman Susan Hale did not respond to a request for comment, and the company’s attorney, Edmond Connor, managing partner of Connor, Fletcher & Williams in Irvine, Calif., declined to comment. Neither party disclosed the settlement amount. White cancelled hearing set for a Nov. 18 but did not indicate when she would reschedule. O’Melveny, which represented MGA from 2004 to 2007 in its copyright battle with Mattel Inc. over the rights to the Bratz doll line, sued its former client last year for $10.2 million in unpaid bills associated with its work in the case. The dispute lingered for more than a year as both sides fought over discovery. MGA initially had filed a counter complaint asserting that O’Melveny had botched the transition to its successor firm, Skadden, Arps, Slate, Meagher & Flom, just before the first Bratz trial began. In that trial, a federal jury awarded Mattel $100 million on claims that MGA infringed on its copyright for the dolls, but the U.S. Court of Appeals for the 9th Circuit overturned the verdict. MGA dropped the malpractice claims after O’Melveny moved for sanctions based on discovery violations. On Oct. 3, both sides filed a stipulation informing the court that they had reached a tentative settlement in the case. The details, including the amount, were not made public. During the Nov. 7 hearing, Connor told the judge by telephone that he hoped both parties could resolve their latest impasse, the nature of which they didn’t discuss in court. O’Melveny isn’t the only law firm alleging unpaid bills against MGA for work in the Mattel case. On Oct. 19, U.S. District Judge David Carter in Santa Ana, Calif., who oversaw the second Mattel trial, granted Orrick, Herrington & Sutcliffe’s request to withdraw from representing MGA. Orrick, which MGA hired in 2009, cited $3.85 million in unpaid legal fees and other compensation. Orrick had stepped into the case following the first trial. The firm handled MGA’s appeal to the 9th Circuit and the second trial, during which a federal jury earlier this year awarded MGA $88.5 million after finding that Mattel stole trade secrets by planting spies at industry trade shows. On Aug. 4, Carter issued a $310 million judgment that included the verdict, which he lowered to $85 million to correct a mathematical error, exemplary damages, attorney fees and costs. Mattel has appealed the judgment. Contact Amanda Bronstad at [email protected].

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