3 Firms to Offer Cash and Toys to Settle Suit

Toys R Us, Mattel Inc. and Little Tikes Co. have agreed to provide $50 million in cash and toy giveaways to children nationwide in order to settle antitrust actions brought by 44 states, including California.

El Segundo-based Mattel will pay $8.2 million in cash and toys, according to California Atty. Gen. Bill Lockyer.

Toys R Us will pay $40.5 million, and Hudson, Ohio-based Little Tikes will make available $1.3 million in cash and toys. Pawtucket, R.I.-based Hasbro Inc. earlier agreed to pay $5.9 million in toys and cash.

The settlement calls for toys and money to be distributed according to a population-based formula. The companies will distribute $3.89 million in toys to children living in California.

Lockyer said the toys would be distributed to needy children through the Marine Corps’ Toys for Tots program.

Toy companies acknowledged no wrongdoing in the settlement that ends litigation initiated in 1997 when attorneys general in 44 states, the District of Columbia and Puerto Rico sued Toys R Us and several leading toy manufacturers.

The 1997 suit alleged that Paramus, N.J.-based Toys R Us conspired with toy manufacturers to limit the number and type of toys made available to such discounters as Price-Costco and Sam’s Club.

Toys will be distributed nationwide and in Puerto Rico during the coming holiday seasons.

Mattel took a $4-million pretax charge during the fourth quarter of 1998. “We’re happy to have the issue resolved and pleased that children will benefit from it,” a Mattel spokesman said.