Toymaker Agrees To $30 Million Class-Action Settlement, The First Over Toy Recalls

January 23, 2008 8:03 a.m. EST

Springfield, IL (AHN) - Owners of Thomas trains and other play items produced by Thomas and Friends Wooden Railways, found last year to be tainted with lead, will be paid back for their recalled toys. RCRC, the manufacturer of the Thomas trains, agreed to a $30 million class-action settlement, the first over toy recalls due to high levels of lead paint.

The Circuit Court of Cook County in Illinois granted a preliminary approval to RC2's proposed settlement on Tuesday to reimburse buyers of 1.7 million lead-tainted toys. The discovery of excessive lead contents paved the way for a massive recall of imported toys made in China.

Toy owners have the option to get a cash reimbursement or a toy replacement, and a bonus item. Those who do not anymore possess the play items or a proof of purchase will be given $15 coupons.

The $30 million settlement excludes $2.9 million in legal fees. The settlement package includes a pledge by RC2 to intensify testing and audit of materials, improve communication between American workers and toy plant staff overseas, and to make it compulsory for contractors to meet RC2's testing and auditing benchmarks.

Jay Edelson, RC2 counsel, admitted the company had some quality controls even prior to the toy recalls, but relied heavily on assurances of its Chinese manufacturers on the safety of their products. Tests were not done regularly.

Following the global concern over toy safety, the Toy Industry Association asked Congress to pass a law making it compulsory for toymakers to undergo toy safety testing. Despite the massive toy recalls, New York Gov. Eliot Spitzer said Monday that state inspectors who visited 2,800 stores discovered 620 recalled toys were still on shelves.