Berkshire Hathaway's Squishmallows Maker Settles Lawsuit with Build-A-Bear Over Plush Toy Allegations

Jazwares, the maker of Squishmallows, has agreed to end a lawsuit against Build-A-Bear Workshop over alleged knockoffs of the plush toys. The two companies asked the court to dismiss the dispute with prejudice, which means it cannot be refiled. Jazwares sued Build-A-Bear last year, arguing that Build-A-Bear's Skoosherz copied Squishmallows' look and feel, and asked for unspecified monetary damages. The case was dismissed by U.S. District Judge Josephine Staton, who found that Skoosherz were similar enough to Squishmallows to let the case move forward.

Jazwares, the maker of Squishmallows, has agreed to end its lawsuit against Build-A-Bear Workshop over alleged knockoffs of the popular plush toys. The two companies filed a motion in a Los Angeles federal court to dismiss the dispute with prejudice, meaning the case cannot be refiled [1].

Jazwares initiated the lawsuit last year, alleging that Build-A-Bear's "Skoosherz" line copied the distinctive look and feel of Squishmallows, potentially confusing consumers. The case was allowed to proceed after U.S. District Judge Josephine Staton found sufficient similarities between the two product lines [2].

The resolution of the lawsuit comes as a relief to both companies, avoiding a protracted legal battle in the competitive plush toy sector. Squishmallows, launched in 2017, went viral on TikTok during the COVID-19 pandemic and saw sales top $1 billion in 2021. Berkshire Hathaway acquired Jazwares' parent company in 2022 [1].

The plush toy market is a significant segment of the global toy industry. According to data from the IndexBox platform, the U.S. is a leading consumer of toys and games, with market size consistently ranking among the world's largest [1].

References:
[1] https://www.indexbox.io/blog/squishmallows-and-build-a-bear-end-plush-toy-lawsuit/
[2] https://money.usnews.com/investing/news/articles/2025-08-25/squishmallows-maker-build-a-bear-call-truce-in-plush-toy-legal-battle