• USA Today, Wednesday, January 23, 2008 11:45 AM

RC2--the maker of Thomas & Friends Wooden Railway toys--has agreed to what's expected to be a wave of settlements related to millions of toys recalled because of lead paint contamination. The $30 million class-action settlement received preliminary approval in the Circuit Court of Cook County, Ill., Tuesday.

The Thomas recall--covering 1.5 million toys in June followed by 200,000 in September--was the first to raise global concerns about excessive levels of lead paint in toys made in China. The agreement calls for reimbursements for hundreds of thousands of consumers and improved product safety, which RC2 says it has implemented.

Consumers would be reimbursed in cash for recalled toys or offered a replacement plus a bonus toy if they prefer. Customers who lack toys and proof of purchase can get $15 coupons. In the 12 months ended Sept. 30, 19 of 61 U.S. toy recalls were because of lead paint, the Consumer Product Safety Commission says.

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