Jack Friedman founded LJN in 1967[1] using funds from his employer Norman J. Lewis Associates (from which the company name "LJN" is derived, being a reversal of Lewis' initials)[2] after seeing the sale figures of Mattel and Milton Bradley Company increase.

The Wrestling Superstars line, which featured action figures based on WWF's roster of wrestlers, was produced from 1984 to 1989.

with a license from the film Gotcha!, but this line were criticized by consumer protection groups due to the danger it posed to eyes.

[24] The toyline was financially unsuccessful, and MCA had to take a $35 million after-tax charge due to its failure and the expenses of the Coleco.

[25] The company was also criticized by police officers and Americans for Democratic Action for its Entertech line of toy water guns due to how realistic they looked; LJN changed the design of the toys after three people in the United States from ages 13 to 19 were killed as a result of police officers thinking they had actual guns, and multiple cities and states banned the sale of realistic toy guns.

[26][27][28] Lawrence J. Kirk Jr. fired half of the company's employees as part of a cost-cutting plan during his seven months as president from 1989 to 1990.

[29][30] Acclaim closed LJN's toy division and shifted the company's focus to video game publishing.