Mattel Agrees to Settle Lawsuits over Lead-tainted Toys

October 16, 2009

Los Angeles - Toy company Mattel and its Fisher-Price subsidiary on Tuesday settled a class-action lawsuit that could amount to $50 million over the lead-tainted toys which were part of a massive recall in 2007.

As part of the settlement, Mattel will provide refunds and other forms of reimbursement to consumers who purchased the recalled toys which were found to have high levels of lead, a chemical which can affect internal body organs and lower IQ after a prolong exposure.

Mattel said consumers who are included in the class-action lawsuit will receive either $10 or 50 percent of the voucher’s value which were given to them after the recall announcement, depending on which is greater.

For consumers who were not part of the lawsuit but have a lead-tainted toy or proof of purchase will receive vouchers worth the amount of the purchased item.

People who purchased a toy but destroyed it after the recall announcement will receive a voucher three times the amount of the item.

According to conservative estimate, the vouchers’ value may reach $10 million.

Meanwhile, parents who spent for laboratory exam to test their children for lead exposure will recover their out-of-pocket expenses. With this compensation, Mattel is expected to pay a total of $600,000.

The toy company will also donate $275,000 to a non-profit organization that provides funding to hundreds of children’s hospital across the US.

In 2007, Mattel announced a recall that covered more than 2 million toys made from China. Several retailers and distributors also announced a recall on the lead-tainted toys.

According to reports, the series of recalls covered 21 million children’s toys.