Amazon denied motion to stay by New Jersey Supreme Court

Amazon [AMZN] just released an 8K filing stating the New Jersey Supreme Court has denied the company's motion to stay on its appeal regarding a courts previous decision to terminate Amazon's contract with Toys R Us.  As a result of the denial, the company's release goes on to state it is now likely to suffer a $25M hit to its 2Q06 operating income and a total of $50M in 2006 due to Toys R Us no longer paying on its contract.  Amazon goes on to say "we believe we will prevail on the appeal and that Toysrus.com’s claims lack merit", but I personally believe the company has a shot in the dark at winning this case, which will likely lead to the $50M impact in 2006.  However, I also believe this loss is already priced into the stock given the courts previous ruling.  Regardless, this is another hit to a company that is already scrambling to bring leverage to its operating margins and something to get the Street back in its favor.