A US law firm has filed charges against Heelys for allegedly violating the Securities Act of 1933 following reports of serious injuries and at least one death.
Schiffrin Barroway Topaz & Kessler alleges that the manufacturer of the wheeled footwear failed to disclose and misrepresented safety information. This included that a significant number of injuries had been reported to the Consumer Product Safety Commission (CPSC); that children needed to use proper protective equipment to avoid potentially serious injuries and that sales of the product would significantly decrease as the concerns were revealed to consumers. Finally, as a result of these ongoing circumstances, the company’s Registration Statement was false and misleading.
The reports of serious injuries relate to a number of articles that appeared in a number of publications including Paediatrics in June 2007. Following these the CPSC revealed that in 2006 there had been about 1,600 visits to emergency rooms attributed to accidents from children wearing Heelys. According to these reports, a large number of accidents were a result of children falling backwards, which resulted in injuries such as cracked skulls, concussions, broken bones and dislocations. It was also alleged that at least one death occurred.