Hasbro, Gel Blaster Settle Sprawling Dispute Over Toy Shooters

Toy maker Hasbro Inc. and Gel Blaster Inc. agreed to end their legal battles over water-based gel pellet shooters marketed to children, resolving 9 months of litigation that followed a breakdown in a contemplated business deal.

Gel Blaster announced through a spokesman on Tuesday that the companies had reached a settlement, and that it would drop its breach of contract and theft of trade secrets lawsuit against Hasbro before a federal court in Texas. Hasbro, meanwhile, would drop its claims of patent infringement against Gel Blaster at the US International Trade Commission in Washington.

“With this distraction behind us, Gel ...