Mattel Settles Toxic Toys Lawsuits for an Estimated $50 Million
The makers of Fisher-Price toys have agreed to pay about $50 million to settle nearly two dozen lawsuits filed by consumers over millions of Chinese-made toys that were found to contain high levels of lead.
In a proposed settlement filed in a Los Angeles court this week, Mattel Inc. agreed to resolve 22 lawsuits filed against the company and some major retailers who sold the toys, according to an Associated Press report. The settlement must still be approved by a court to take effect. The $50 million price tag is an estimated value of vouchers and cash payments the company proposes making to consumers.
The lawsuits involved some of the company’s most popular brands of toys, including Sesame Street toys, Dora the Explorer and Diego toys made by Fisher-Price, and certain Mattel toys, such as Batman, Polly Pocket, Barbie accessories, and Sarge cars, according to the AP.
Exposure to lead, particularly in young developing children, can result in devastating and permanent injuries. Ingesting elevated levels of lead can cause brain damage, learning disabilities, and other health complications.
Terms of Proposed Settlement Disclosed
Under the proposed settlement, consumers who either bought or received the recalled toys would receive either a voucher for Mattel products or about $10 cash.
Mattel would also reimburse some families for the costs of testing children for lead exposure, establish a quality assurance program supervised by the court, and donate $275,000 to a not-for-profit group called the National Association of Children’s Hospitals and Related Institutions, according to the AP.
The settlement would close the book on nearly all the legal claims stemming from the 2007 recalls of the toys, officials said.
In 2008, Mattel and Fisher-Price agreed to pay $12 million to 39 states to settle an investigation into the lead-tainted toys. In June, Mattel also agreed to pay a $2.3 million civil penalty to the Consumer Product Safety Commission for violating the lead paint ban.
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