A Chatsworth toy manufacturer is suing an insurance company for breach of contract, alleging the defendant wrongfully denied them coverage for their costs in defending a countersuit brought by 42-year-old rapper Clifford “T.I.” Harris and his wife, singer Tameka “Tiny” Harris, in a dispute over the parties’ lines of toy dolls.

MGA Entertainment Inc. and its founder and CEO, Isaac Larian, brought the suit Friday in Los Angeles Superior Court against Atlantic Specialty Insurance Co., seeking unspecified compensatory and punitive damages.

An Atlantic Specialty representative could not be immediately reached for comment.

MGA is a leading designer, developer, marketer and distributor of children’s toys, with products that have frequently been recognized at the annual Toy Industry Awards, the suit states. The company’s L.O.L. Surprise! products have consistently been among the best-selling toys in the United States since 2017, according to the suit.

The L.O.L. Surprise! O.M.G. brand was an instant success and won the Toy Association’s Fashion Doll of the Year award in 2020, the suit states.

MGA obtained a policy from Atlantic Specialty that was in effect throughout 2021 that included promises to pay for losses and to defend against claims involving actual or alleged errors, omissions, misstatements, misleading statements or breaches of duty by MGA, its executives or its employees, the suit states.

MGA received a cease-and-desist letter in December 2020, alleging that its L.O.L. Surprise! O.M.G. product line infringed on intellectual property rights owned by the Harrises and OMG Girlz LLC, the company formed by Tiny Harris in 2009, the suit states. Tiny Harris, 47, is a member of the multi-platinum girl group Xscape.

MGA filed a federal lawsuit seeking a declaratory judgment that its products were not infringing on the Harris’ intellectual property rights, but the Harrises countersued MGA and Larian, accusing both of plagiarizing their dolls’ aesthetic and likeness, according to the current suit.

However, when MGA and Larian submitted a claim with Atlantic Specialty to pay for their defense costs, the insurer determined that coverage would not be provided because the claimed involved alleged infringement of intellectual property rights, the suit states.

MGA and Larian have incurred considerable legal costs by having to pay for their defense in the Harris countersuit as well as in bringing the complaint against Atlantic Specialty, the suit states.

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