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$30 Million Settlement in Thomas & Friends Suit

Company says it has instituted new safety procedures

January 26, 2008

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A Chicago judge has given preliminary approval to a $30 million settlement in a class action lawsuit filed after the recall of lead-contaminated Thomas & Friends wooden railroad toys.

The company agreed to provide reimbursements to hundreds of thousands of consumers and institute stricter safety controls.

Consumers would be either reimbursed in cash for recalled toys or, if they prefer, offered a replacement plus a bonus toy. Customers without toys and proof of purchase can receive $15 coupons.

The manufacturer RC2 said it has imposed new safety regulations on its overseas suppliers and will require all contract manufacturers to meet safety standards. The company faces at least 17 lawsuits stemming from the recall.

The company recalled 1.5 million toys in June, then recalled another 200,000 in September. Although lead-tainted toys have been the subjects of recall campaigns for years, the recall of the expensive Thomas & Friends toys caught the attention of affluent consumers and the press, setting off a wave of recriminations among federal safety regulators, politicians and toy manufacturers.

In the 12-month period ending September 30th, 19 of 61 U.S. toy recalls were a result of lead paint, according to the Consumer Product Safety Commission (CPSC). “The trend has continued in 2008,” as companies increasingly test for and find more lead paint, said CPSC spokesman Scott Wolfson.

Legislation is pending in both the House and Senate to beef up the Consumer Product Safety Commission, which has operated without a chairman since July 2006 when Hal Stratton resigned abruptly.

RC2 says it has dropped the Chinese manufacturer responsible for the lead-tainted paint and now tests every batch of paint used on its toys.

Lead is known to cause cancer and reproductive harm and can cause mental and physical retardation and behavioral and other health problems in children. In adults, lead can damage the nervous system.

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