Mattel Settles Toxic-Toys Case for $50 Million

Mattel Inc. and subsidiary Fisher-Price have agreed to pay more than $50 million to settle consolidated class actions over toys coated with lead paint.

The Judicial Panel on Multidistrict Litigation consolidated the lawsuits for pretrial proceedings in the U.S. District Court for the Central District of California in December 2007.

Of the $50 million settlement amount, $13 million will cover the plaintiffs' counsel fees and costs, to be divided among 20 firms.

Mattel said in a statement that the settlement, subject to court approval, resolves "virtually all" U.S. claims related to its 2007 product recalls.

All the consolidated class-action lawsuits involved the same allegations concerning toys that Chinese companies made for Mattel and Fisher-Price. The products were recalled because their surface paint might have contained lead in amounts that exceeded applicable federal standards.

The recalls covered more than 1 million toys.

The settlement will provide refunds or other reimbursements to consumers who purchased later-recalled toys and those who paid for lead testing.

Class members who participated in the recalls will get a check for $10 or 50 percent of the total amount of the vouchers.

Consumers who paid to have the blood-lead level of a minor child tested can seek reimbursement for their costs, but Mattel will not be required to pay more than $600,000 in total for such reimbursements.

Last year Mattel and Fisher-Price agreed to pay $12 million to 38 states to settle an investigation into the events that led to the 2007 recall. The states had been looking into how the parent company permitted the lead-tainted toys to be sold and whether its quality-assurance processes were adequate to safeguard against lead-contaminated toys.

California reached a separate settlement over the recalled toys in which Mattel and other manufacturers agreed to pay the state $1.8 million.

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