RC2 OKs $30 million settlement of toy suit

The maker of "Thomas & Friends Wooden Railway" toys has agreed to pay $30 million to settle a nationwide class-action lawsuit by thousands of families who purchased lead-tainted products, a plaintiffs' attorney said Wednesday.

Under the deal, Oak Brook-based RC2 Brands will offer cash refunds or replacement toys, plus what the company calls a bonus toy; it also promises to implement new quality controls, said Jay Edelson, the lead attorney for the plaintiffs.

RC2's Chinese manufacturers knew there were problems with the paint on the toys but the information wasn't relayed to company upper management in a timely way, Edelson said.

The lawsuit was filed in the Circuit Court of Cook County last year, and the court gave the settlement preliminary approval Tuesday. The judge is expected to give final approval at a hearing May 6, Edelson said.

RC2 CEO Curt Stoelting welcomed the preliminary agreement, saying in a statement it "builds upon the many steps that we've taken to replace recalled products and improve product safety" and will help "continue to build parents' trust."

The RC2 statement did not include a total settlement amount, and company spokeswoman Sarah Meltzer declined to comment Wednesday on the $30 million figure cited by Edelson.

In June of last year, the Consumer Product Safety Commission announced RC2 was voluntarily recalling about 1.5 million items in what would become the first of several major roundups involving lead paint on toys made in China.

The company has dropped its supplier, Hansheng Wood Products, which made the Toad train car pieces as well as the items in the first recall.