October 13, 2009 - Class Achieves Gains to Protect Children in 'In re Mattel, Toy Lead Paint Products Liability Litigation'

Head of the Executive Committee Keller Rohrback L.L.P. has reached a ground-breaking settlement in a nationwide lawsuit regarding the largest recall of toys in recent history by Mattel and its subsidiary Fisher-Price, In re Mattel, Toy Lead Paint Products Liability Litigation, MDL 1897 (C.D. Cal.). In 2006 and 2007, Mattel recalled over 14 million toys in the U.S., due to excessive lead, lead paint, and hazardous magnets. Mattel also withdrew certain toy blood-pressure cuffs in medical kits from retailers' shelves in Illinois after that state's Attorney General found lead in the plastic, but never issued a formal nationwide recall. The settlement provides tens of millions of dollars in monetary relief as well as significant injunctive relief designed to ensure toy safety going forward.

The monetary relief responds to the variety of circumstances affecting class members:

• First, class members who participated in the recalls will automatically receive either a check for 50% of total vouchers sent or $10.00, whichever is greater.
• Second, class members who did not participate in the recalls, but who possess a recalled toy or proof of purchase of a recalled toy will receive either a check or a voucher for the full amount of the toy.
• Third, class members who declare that they purchased or acquired a recalled toy, but who destroyed the item following the recall, will receive a voucher in the amount of the toy for up to three toys, up to $10 million for the class.
• Fourth, class members who purchased or acquired certain recalled toys in which only one standalone piece was affected may obtain up to $12.
• Additionally, class members may recover all out-of-pocket expenses incurred for lead testing, up to $600,000 for the class.

The injunctive relief provides important protections, for the class and the general public, against similar problems arising in the future. To ensure safety going forward, Mattel must certify annually for three years to the Court that it is maintaining certain quality assurance / quality control programs. Further, Mattel has agreed to comply with, among other things, new federal laws and regulations, emerging industry standards, and ASTM rules.

Finally, the settlement provides for a cy pres payment to the National Association of Children's Hospitals and Related Institutions in the amount of $275,000 for child safety programs.

Keller Rohrback Managing Partner Lynn Lincoln Sarko states, "As head of the Executive Committee, we are pleased that this settlement achieves important gains for Mattel consumers both now and in the future. We look forward to ensuring that class members and their children receive the full benefit of the settlement terms."