RC2 to settle recall lawsuit

US firm expects to pay up to $4.5 million in recall and legal costs.
Publish date:

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.



RC2 posts Q3 loss

Firm?s income drops by more than 40 per cent, announces increase and extension of stock repurchase program.

Featured Jobs


Marketing Director UK

Gameplan I Southeast of England I Salary: Competitive I Date Published Monday 7th January 2019

Rainbow logo landscape_home of classic Final

Product Manager

Rainbow Designs Ltd I Olympia, London I Salary: Competitive I Date Published Wednesday 16th January 2019