Press Release
Lieff Cabraser Announces Settlement of Antitrust Lawsuit Against Hasbro, Inc., that Will Result in Distribution of Free Toys to Needy California Children this Holiday Season
February 17, 2000 -- William Bernstein of the law firm of Lieff Cabraser Heimann & Bernstein, LLP, announced today that thousands of needy California children will receive free toys this holiday season as a result of a partial settlement in an antitrust action against major toy manufactures and Toys 'R' Us, Inc., the nation's largest toy retailer. The agreement was reached between toy maker Hasbro, Inc., a nationwide class of consumers and 44 states, Puerto Rico and the District of Columbia. Nationally, the deal is valued at $5.95 million in toys and cash payments.
"Hasbro's decision to settle its portion of the lawsuit will bring joy to deserving children this holiday season," Mr. Bernstein said. "I can think of no better way," Mr. Bernstein added, "to settle an antitrust suit against a toy manufacturer than to secure an agreement to distribute free toys."
According to the settlement terms, which are subject to court approval, Hasbro will provide toys worth $3.57 million at manufacturer's list price. The toys will be distributed through the U.S. Marine Corps' acclaimed Toys for Tots program.
Hasbro also agreed to pay the states $2.38 million in cash, with the express provision that the funds benefit children by supplying them with toys, books or other educational materials.
As part of the accord, Hasbro admitted no wrongdoing. The agreement has no affect on the ongoing case against co-defendants Toys 'R' Us and toy makers Mattel, Inc. and Little Tikes Company, a subsidiary of Rubbermaid, Inc.
On behalf of plaintiff Suzette Lyons, Lieff Cabraser sued Toys 'R' Us in May of 1996 under California law for allegedly conspiring since 1989 to withhold popular toys from low margin warehouse clubs that undercut Toys 'R' Us prices. Last fall, on behalf of plaintiffs Cathy Schmidt and Sharon Weber, Lieff Cabraser also brought a lawsuit under federal antitrust law in federal district court in New Jersey.
According to the lawsuit, Toys 'R' Us brokered an illegal agreement among the toy manufacturers to ensure that the warehouse clubs could obtain certain popular toys only in "combination packs," which cost consumers more and whose prices couldn't be compared with items sold by Toys 'R' Us.
Toys from the Hasbro settlement will be allotted to all 50 states, Puerto Rico and the District of Columbia, and distributed through the U.S. Marine Corps' Toys for Tots program. Toys and cash payments will be divided according to each state's population.
The Lieff Cabraser attorney handling the case is William Bernstein.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a fifty-plus attorney law firm that has represented plaintiffs nationwide since 1972. We have offices in San Francisco, New York and Nashville. We represent plaintiffs in class and group actions and in individual lawsuits in cases involving substantial losses. For the last six years, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation.
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