T.I. and Tiny Harris were recently awarded a whopping $71 million judgment in their hard-fought lawsuit against toy company MGA Entertainment, following a claim that the company’s L.O.L. Surprise! dolls copied the likeness of members of the OMG Girlz, a teen group launched by the couple in 2009.
Founded by Tiny, OMG Girlz was led by Tiny’s daughter Zonnique Pullins, with Bahja Rodriguez and Breaunna Womack. Reginae Carter, the daughter of Lil’ Wayne, was also a member until 2010.
Inside the T.I. and Tiny Lawsuit
On Sept. 23, a jury awarded T.I. and Tiny $17.8 million in actual damages, representing profits MGA earned from the dolls, and $53.6 million in punitive damages. Despite the win, T.I. recently explained in an interview with “The Breakfast Club” on Oct. 14 that the road to victory was far from easy. And it was the persistence of his wife, Tiny, who pushed for them to pursue the costly case.
“I did not want to [sue],” T.I. shared, noting the legal fees had run up to at least half a million before the case was said and done. “It was my wife. She kept pressing the hell out of the issue. … I’m glad she did.” This marked the third time T.I., who reportedly is worth an estimated $20 million, and Tiny, worth an estimated $10 million, sued over the dolls’ likeness to the OMG Girlz.
The first trial ended in a mistrial in January 2023 and MGA won the second in May 2023, but that verdict was later overturned on appeal. The lawsuit was initiated in 2020.
During the latest trial, Pullins, Rodriguez, and Womack testified that the dolls copied their looks from specific public events. Attorneys presented images of the comparisons and argued that the group’s fans thought the dolls represented the group, which disbanded in 2015.
MGA argued that it did not misappropriate the “short-lived” group’s identity.
T.I. and Tiny meanwhile accused MGA of stealing the image of a “young multicultural women” group and committing “cultural appropriation and outright theft.”
The L.O.L. Surprise! dolls, marketed as the ultimate mystery unboxing experience–the packaging concealed which doll was inside. Retailing for as low as $7 each, L.O.L. Surprise! became the country’s top-selling doll, moving more than 2.5 million units within five months of launch, according to The NPD Group. MGA later expanded the brand with related lines like O.M.G., three video games, and two Netflix animated films.
T.I. and Tiny’s case faced several hurdles, but, a recent change in trademark law sparked by a Supreme Court ruling in 2023, triggered by a Jack Daniels case, led the Harris family to return to court after the initial loss.
When the final decision was made, T.I. was not in court that day but on a film set. But he was on the phone listening to the ruling, and at first was shocked at the amount the jury awarded them.
“I was listening and I heard him say, you know, that like the first infringement or so on and so forth. Then they went down a list of dolls—what they did, which ones did what. But then I heard a number. I heard $17-something million. I said $17 million? Yeah, I did. I said $17 million and everybody looked at me…,” said T.I. who had to hang up the phone to catch a flight.
“And while we were on the plane, they went back into deliberation for punitive damages. Then they came back with the punitive and said $53 million. Fifty-three million plus the 17? I said goddamn. Turn the plane around,” said T.I.
While MGA Entertainment can appeal the decision, T.I. Claimed that future legal battles could lead to a significantly larger payout: “Now we’re looking at all the dolls. So you want to open up the door for trademark? That 73 [million] could turn to three B’s,” said T.I., who also revealed he was retiring from performing.
While the couple recently a major money win, T.I. was quick to address a widespread misconception, that monetary judgments aren’t taxed. Contrary to popular belief, punitive damages are subject to taxes.
“On the punitive, you do have to pay taxes,” he explained during the interview.
According to the Internal Revenue Code, Section 61 all income is taxable unless a specific exclusion applies. For lawsuits, settlements, and judgments, the key question is what the settlement or payment is intended to replace.
If the damages are intended to compensate for physical injuries or physical sickness, they are generally not taxable. Punitive damages, even in personal injury cases, are taxable. For non-physical injuries (such as emotional distress or defamation), the settlement is taxable unless it is related to medical expenses for emotional distress. If the settlement compensates for lost wages or lost business income, it is taxable as it must be reported as income.
In T.I.’s case, while actual damages related to the profit from the dolls may not be taxable if they are compensatory, the $53 million in punitive damages will likely be taxed.
Despite the taxes, T.I. said the outcome is a blessing, stating, “I love to see like my daughters, my daughter and my nieces — they straight.”
