Hasbro Settles Antitrust Suit
Hasbro agreed to pay about $6 million to settle an antitrust lawsuit with 44 states over unfair sales practices, New York Attorney General Dennis Vacco announced Thursday.
Hasbro will pay $2.4 million in cash to the states, Puerto Rico and the District of Columbia to establish funds to benefit children. Hasbro will also give $3.6 million worth of toys to the charity group Toys for Tots this holiday season.
In 1997, Vacco sued Toys R Us, Hasbro, Mattel and Little Tikes, claiming Toys R Us pressured its suppliers not to ship Mr. Potato Head, Barbie dolls and other popular toys to such warehouse discounters as Price Club, Sam's and BJ's.
"What better way to settle an antitrust probe against a toy manufacturer than to secure its agreement to distribute free toys," Vacco said.
Hasbro has admitted no wrongdoing in the suit, but settled to avoid a possible lengthy litigation process, said spokesman Wayne Charness.
"We are happy to have the matter resolved with children as the beneficiary," Charness said.
The settlement with Hasbro does not affect the ongoing case against Toys R Us, Mattel, and Little Tikes.
In a separate action in October, the Federal Trade Commission found Toys R Us stifled competition by limiting which toys manufacturers can sell to discount rivals, and ordered the company to stop engaging in illegal practices.
Toys R Us, the nation's largest toy retailer, maintained that it was acting in the best interests of its customers and plans to appeal the government's finding.
The states taking part in the suit: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.
The settlement must be approved by a federal judge.
Written By Gina Chon