Slightly O/T, but bad news all the same...

CHESTERFIELD TOWNSHIP, Mich. - Model train maker Lionel LLC filed for Chapter 11 bankruptcy protection on Monday, citing a jury's ruling that it must pay a rival for misappropriating designs.


A U.S. District Court jury in Detroit ruled Oct. 4 that Lionel and others must pay $40.8 million to Mike's Train House Inc. Lionel is appealing the decision.


Mike's Train House, based in Columbia, Md., sued Lionel in 2000, saying Lionel sold trains made from designs stolen from a South Korean manufacturer hired by Mike's Train House.


The jury found that Lionel, along with its supplier Korea Brass Co. Ltd. and an individual, Yoo Chan Yang, earned millions of dollars by misusing designs that belonged to the Mike's Train House.


Lionel chief executive Jerry Calabrese said the only reason for the filing is the legal case.


"Lionel is a sound company that enjoys healthy sales, growing demand for our products and the best brand and reputation in the business," he said in a news release.


Lionel is based in Chesterfield Township, north of Detroit. It was founded in New York in 1900 as Lionel Manufacturing Co.


Found this on Yahoo! News. Completely crappy news in my opinion, not only as someone who enjoys model trains (though I'm more of an Athearn guy myself) but as someone with a lot of respect and fond memories from this 100+ year old contributor to hobbists in general.

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A U.S. District Court jury in Detroit ruled Oct. 4 that Lionel and others must pay $40.8 million to Mike's Train House Inc.


:eek7: :eek7:

If he ripped off someone else's work he got what he deserved I'm afraid. Don't know all the facts so I'm not going to pass any other judgements.

I'm completely taken aback by this. Lionel, by the way lotus man, is not a "he," it is a very well respected company that's been in business for 100+ years (104 according to the article). Anyone who's walked withing 50 feet of a model train knows the name Lionel, their O guage 3-rail trains were the industry standard until HO scale showed up in the 60's (?). I find it hard to beleive that Lionel would steal designs, especially from "Mikes Train House." Makes me wonder if they did some outsourcing and didn't check on it as well as they should have.

Agreed Layla'skeeper, complete shame, even if I was never a fan of their line. Always sucks to see such a juggernaut fail.

Damn... I find it kinda hard to believe. I remember my dad's gigantic old Lionel set. It's a real shame.