RC2 has reached a proposed settlement in the US class action lawsuit regarding last year’s recall of its Thomas & Friends Wooden Railway products.
The firm expects to record a charge between $3.5 million and $4.5 million, net of tax, in its 2007 financial results to cover estimated costs.
Curt Stoelting, the firm’s CEO said: “This preliminary agreement acknowledges and builds upon the many steps that we’ve taken to replace recalled products and improve product safety, including instituting our Multi-Check Safety System, to safeguard current and future toy production.
“The Multi-Check Safety System, which provides additional comfort for parents, has now been extended to all of RC2’s product lines. We’re pleased that we’ve been able to reach a proposed settlement, which if approved, will resolve this nationwide class action in a manner that helps us to continue to build parents’ trust.”
The settlement is awaiting final approval from the Court.