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
Performo Toy Company as does a nightly news broadcast in the heyday of television broadcasting. There is a well known legend in Middletown about how Performo Toy Company sued The Walt Disney Company, which included some coverage in the local paper. A conspiracy theory might have arisen from this story, however, "History Detectives", a television program on PBS, conducted an extensive investigation on the topic. The historians and researchers of the PBS program conducted a nationwide search, finding that there are no records nor evidence of any legal action between the two parties. Inquiries to Disney historians and archivists resulted in a letter