Mattel settles class action suit over 2007 recalls
By Staff -- Gifts and Dec, 10/14/2009 8:10:00 AM
NEW YORK—Mattel and its Fisher-Price subsidiary have settled a class action lawsuit brought against the toymakers for their 2006 and 2007 toy recalls over lead levels and other safety hazards, according to a law firm representing the class.
Co-lead counsel for the class, Whatley Drake & Kallas, said on Oct. 13 that the settlement provides “provides tens of millions of dollars in monetary relief, as well as significant injunctive relief.” The Associated Press pegs the potential cost of the agreement to be in the $50 million range.
The settlement will see class members who participated in the recalls receive either a check for 50 percent of total vouchers sent or $10, whichever is greater. Class members who did not participate in the recalls, but who possess a recalled toy or proof of purchase of a recalled toy, will receive either a check or a voucher in the amount of the toy. Class members who declare that they purchased or acquired a recalled toy, but who destroyed the toy after the recall, will receive a voucher in the amount of the toy for up to three toys, up to $10 million for the class. Class members who purchased or acquired certain recalled toys in which only one standalone piece was affected may obtain up to $12. Additionally, class members may recover all out-of-pocket expenses incurred for lead testing, up to $600,000 for the class.
Also under the settlement Mattel must certify annually for three years to the court that it is maintaining certain quality assurance/quality control programs. Further, Mattel has agreed to comply with, among other things, new federal laws and regulations, emerging industry standards, and ASTM rules, according to Whatley Drake & Kallas. The toymaker has also agreed to donate $275,000 to the National Association of Children's Hospitals and Related Institutions for child safety programs.
In a statement released on Oct. 13, Mattel said that is previously reported financial results “have included charges to reserve for this litigation, and the terms of this final settlement were not material to the company's operating results.”
The company added that “[The] safety of our products remains Mattel’s top priority, overseen by our Corporate Responsibility group, which reports directly to the CEO. All of our efforts, from product design and development to manufacturing, reflect that commitment.”
In 2006 and 2007, Mattel and/or Fisher-Price recalled more than 14 million toys.The class action suit, In re Mattel, Toy Lead Paint Products Liability Litigation, MDL 1897 (C.D. Cal.), consolidated 22 individual lawsuits stemming from the recalls.
-
RC2 settles recall suit
Jan 23, 2008 -
Mattel: Return toys to us
Aug 17, 2007 -
Licensors, retailers respond to recalls
Aug 15, 2007 -
A Patchwork of Protection
Aug 1, 2008
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
