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MONTREAL, Sept. 27, 2011 /CNW Telbec/ - MEGA Brands Inc. (TSX: MB)
announces that the U.S. District Court for the District of New Jersey
has preliminarily approved the settlement of a class action lawsuit
filed in 2008 by a resident of California on behalf of all persons who
purchased and/or received "Magnet Toys" in the United States, which
include those toys that were the subject of product recalls in 2006,
2007 and 2008.
MEGA Brands denies any and all liability but has agreed to settle the
matter to avoid the expense and resources that would be needed for
further litigation. The Corporation has made a provision for this
lawsuit in its financial statements and considers that, based on the
proposed settlement, such provision is adequate.
This lawsuit does not allege personal injury claims. Rather, plaintiffs
in the lawsuit claimed that certain Magnet Toys contained defective
magnets, and they asked for their money back. The defendants in the
lawsuit are MEGA Brands Inc., MEGA Brands America Inc., and Target
Under the proposed settlement, a consumer is considered to be a "Class
Member" if they bought a qualifying Magnet Toy. Under the settlement,
Class Members will be eligible for a payment if (1) they bought a
Magnet Toy that was subject to a recall, (2) they bought a qualifying
Magnet Toy and have a receipt or other proof of purchase, (3) they
purchased or received a qualifying Magnet Toy and have a piece of the
toy, toy packaging, or the manual, (4) they have qualifying Magnet Toy
parts, or (5) they submit a statement under oath that they purchased or
received a qualifying Magnet Toy.
The settlement provides that Class Members may receive cash
reimbursements up to the purchase price of the toy, depending upon
proof of purchase. Defendants also have agreed to contribute $100,000
in cash and product toward the establishment of a foundation that
addresses children's health issues.
More details about the settlement and how to file a claim are available
at www.megabrandssettlement.com or by calling 1-800-760-6332.
The Court will hold a final approval hearing on December 15, 2011 at
11:00 a.m. At that time, the Court will consider whether to grant
final approval of the settlement and award attorneys' fees.
About MEGA Brands
MEGA Brands Inc. is a trusted family of leading global brands in
construction toys, games & puzzles, arts & crafts and stationery. They
offer engaging creative experiences for children and families through
innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information.
The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board
Dudes are trademarks of MEGA Brands Inc. or its affiliates.
All statements in this press release that do not directly and
exclusively relate to historical facts constitute "forward-looking
information" within the meaning of applicable Canadian securities laws.
These statements represent the Corporation's intentions, plans,
expectations and beliefs. Readers are cautioned not to place undue
reliance on these forward-looking statements. Forward-looking
information and statements are based on a number of assumptions and
involve risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or implied by them,
including, but not limited to risks, assumptions and uncertainties
described in the Corporation's MD&A for the year ended December 31,
2010, which are available at www.sedar.com and on the Corporation's Web site. The Corporation disclaims any
intention or obligation to publicly update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by applicable law.
SOURCE MEGA BRANDS INC.
For further information:
Mark P. Girgis
Vice President, Legal Affairs and Corporate Secretary
MEGA Brands Inc.
Tel: (514) 333-5555 ext. 2897