A company that made recalled toys with magnets embedded in small flexible parts which can apparently be ingested or aspirated and purportedly injured and killed a number of toddlers, has reportedly announced that it will provide refunds to consumers. This action follows a federal court’s preliminary approval of the settlement of a nationwide class action involving safety-related claims for the products. Berry v. Mega Brands, Inc., No. 08-01750 (U.S. Dist. Ct., D.N.J., decided August 17, 2011). A December 15, 2011, hearing has been scheduled to determine if the agreement should be granted final approval.  

While the company denies liability, it has agreed to provide class members with “cash reimbursements up to the purchase price of the toy, depending upon proof of purchase.” The company has also agreed to (i) “contribute $100,000 in cash and product toward the establishment of a foundation that addresses children’s health issues,” (ii) pay up to $3.5 million in attorney’s fees, and (iii) provide an incentive award of $1,000 for the named plaintiffs. The claims at issue are economic only and do not involve personal injury. See Mega Brands Press Release, September 27, 2011.