Mattel Agrees Settlement in Lead Contaminated Toys Lawsuits

Mattel and its subsidiary Fisher Price, have reached a tentative settlement that could reach $50 million, and ending litigation over its 2007 toy recalls.

The toys, numbering in the millions, were contaminated with high levels of lead. They were manufactured in China and were part of a series of product recalls around that time resulting from poor manufacturing standards in China.

The proposed settlement would cover 22 lawsuits filed against the toy manufacturer and several retailers. According to a report on ABC News, "Mattel will provide toy buyers who are part of the class-action lawsuit either 50 percent of the total amount of vouchers Mattel has sent out following the recalls or $10, whichever is greater."

The toys affected by the recall include certain Mattel toys, such as Polly Pocket, Batman, Barbie accessories, and Sarge cars, and certain Sesame Street toys such as Dora the Explorer and Diego toys made by Fisher-Price.

Additionally, Mattel will establish a quality assurance program as part of the settlement, which will be overseen by the court, and the company will donate $275,000 to the National Association of Children's Hospitals and Related Institutions, a not-for-profit group made up of 150 children's hospitals and pediatric units.