RC2 faces $30m recall bill

A settlement deal over its Thomas toy recall could cost RC2 $30m.
Publish date:
Social count:

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.


Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.


UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.