Someone did something wrong, as the three low level brokers had to pay 489K to 4Kids after settling their arbitration dispute. That wasn't even the big claim, and they were willing to settle. Read the original suit, as it lists the facts. I think Wmish has it some site he has. If you go to the Trustee site that lists the Docket like 4Kids used to, you can Google 4kids to see what shows up in the text of court proceedings. There is nothing suggesting a dispute of any kind, as the Trustee (Giddens) would likely have objected at some point if it was not valid at all.
Three brokers paid close to 500K, so that tells you something about the facts of the case. And those are small fry guys.