Still fighting over toys…
Toys R Us may be a private company now, but they’re still filing with the SEC and the Q that they filed yesterday had an interesting disclosure about its ongoing legal battle with Amazon.com (AMZN) that doesn’t appear to turn up in any of Amazon’s own filings since this 8-K filed in early June.
Though Toys R Us won its suit filed back in May 2004 against Amazon back in March, the latest Q shows that Amazon is still fighting, filing a lawsuit in June in its home state of Washington that was later bounced to New Jerssey, where Toys R Us is based. Here’s a snippet from the Toys R Us filing:
Based upon the filing of the Washington Court action, however, Amazon.com withheld monies due us for sales made from the co-branded stores. Amazon.com had also failed to provide the withheld amounts to us and is still seeking relief in its Washington Court action. On August 2, 2006, the Washington Court confirmed that these aspects of the parties’ disputes should be decided by the New Jersey courts. On August 14, 2006, the New Jersey Trial Court directed Amazon.com to deliver the withheld monies “forthwith” and, subsequently, Amazon.com had returned most of the funds. The Washington Court has directed that any further litigation over these issues proceed in the New Jersey courts.
How much longer will this drag on? It’s already been over two years since Toys R Us first filed the suit. Who knew that attorneys could spend so much time — and presumably money — fighting over toys?