Ruth Handler company, Ruthton Corp., formed by her and Peyton Massey, which manufactured a more realistic version of a woman's breast, called "Nearly Me". She personally fitted one for the then first lady, Betty Ford. In 1974, Handler resigned from Mattel after investigations of producing fraudulent financial reports. In 1978, Handler was charged with fraud and false reporting to the Securities and Exchange Commission. She pleaded no contest, was fined $57,000 and sentenced to 2,500 hours of community service.She blamed her illness for making her "unfocused" on her business. Though the Handlers took a more hands-off approach to their company's business practice
Carole E. Handler 1998, Handler took on the case of Holocaust rescuer (Righteous Gentile) Irene Gut Opdyke when Opdyke tried to re-gain the rights to tell the "authorized" account of her life story, which she had previously assigned in a lawful motion picture option agreement. Handler worked with the parties to reach an agreement and the case was dismissed with prejudice. In an ironic twist, after the trial, all parties agreed that the promoter did "nothing wrong." Opdyke publicly acknowledged the promoter who she sued by thanking him in her book, “In My Hands” and agreed to give him a producer credit for