On Friday, Jakks said that two of three charges in a lawsuit filed against it by World Wrestling Entertainment Inc. had been dismissed in U.S. District Court. The dismissed charges alleged price discrimination and antitrust violations.

Still pending is WWE's charge that Jakks violated the RICO Act, which prohibits investing in or acquiring a business through illegal acts.

"While this news does not resolve the pending litigation brought by WWE against JAKKS, we believe that Jakks' success in having two of the three federal claims dismissed signifies some positive legal momentum for the company," Edward Woo, an analyst for Wedbush Morgan Securities, wrote in a research note on Monday. "We continue to believe that any type of settlement or resolution of the WWE litigation short of a significant adverse ruling will be positive for Jakks."

He reiterated his "Buy" rating for the stock and his estimate of 2006 earnings of $2.30 per share, excluding revenue from WWE-themed products. Analysts, on average, are predicting 2006 earnings of $2.42 per share, according to a Thomson Financial poll.

Jakks shares rose 66 cents, or 2.5 percent, to $27.40 during afternoon trading on the Nasdaq, topping a recent 52-week high set on Friday. Earlier in Monday's session, the stock peaked at $27.82.

WWE stocks fall today at the news  $16.66  - .24