News
RC2 faces $30m recall bill
Ronnie Dungan May 9 2008, 11:40am
A settlement deal over its Thomas toy recall could cost RC2 $30m.
A state judge approved a preliminary settlement with the manufacturer, in a deal that could cost $30 million in refunds or replacements and reimbursement for lead poisoning tests.
The amended settlement covers about 20 complaints filed in federal and state courts nationwide according to RC2’s attorney.
In 2007, the US Consumer Product Safety Commission issued a recall of 1.5 million Thomas toys made in China because they contained unsafe amounts of lead paint. The firm offered replacement and bonus toys as part of the recall, but lead was found in about 2,000 bonus items.
Ultimately, the company recalled about 1.7 million toys thought to have excessive amounts of lead paint.
Plaintiff attorney Jay Edelson estimated the total settlement cost could reach about $30 million, with compensation provided to about 400,000 consumers.
Final consideration of the RC2 settlement is scheduled for August 6th in state court, at which time plaintiffs also will seek about $2.9 million in legal fees.
