Toymaker Mattel Inc. on Oct. 13 agreed to a settlement that will provide refunds and other monetary relief to families who purchased children`s toys manufactured in China that were recalled as a result of dangerously high levels of lead (In Re: Mattel Inc. Toy Lead Paint Products Liability Litigation, No. 07-1897, C.D. Calif.).

The tainted toys, which included certain Sesame Street, Dora the Explorer and Diego toys made by Fisher-Price and certain Mattel toys such as Batman, Polly Pocket, Barbie accessories and Sarge cars, were recalled or withdrawn from the market in 2006 and 2007.

More than 20 plaintiffs sued defendants Mattel Inc., Wal-Mart Stores Inc., Fischer-Price Inc., KB Toys Inc., Kmart Corp., Toys “R” Us Inc. and Target Corp. in federal court, alleging injury and negligence for making and selling children’s toys that contained lead.

On Dec. 27, 2007, the Judicial Panel on Multidistrict Litigation consolidated the numerous cases filed against the defendants before U.S. Judge Dale S. Fischer of the Central District of California.

If approved by the court, the settlement will require Mattel and Fisher-Price to provide refunds to consumers who purchased or acquired the toys, up to $10 million for the class. Additionally, the company will reimburse families who incurred costs for testing their children for lead exposure, up to $600,000 for the class.

Mattel will also implement a quality assurance program and will donate $275,000 to the National Association of Children`s Hospitals and Related Institutions, a not-for profit association of 150 children`s hospitals, pediatric units of medical centers and related health systems.