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Thomas The Train Maker Pays $30 Million

CHICAGO - RC2 Brands, which makes "Thomas & Friends Wooden Railway" toys, will pay $30 million to settle a nationwide class action from families that bought lead-tainted products. RC2 Brands will offer cash refunds or replacement toys, plus a bonus toy, the settlement states.

The company also promises to create new quality controls. The settlement was filed in Cook County Court, where the class action was filed last year. A judge is expected to give final approval of the settlement at a May 6 hearing.

RC2 voluntarily recalled 1.5 million toys in June 2007, starting a trend of recalls on toys with lead paint made in China. RC2 has dropped Hansheng Wood Products, the supplier that made the toys involved in the first recall. RC2 reported earnings of $500 million in 2006.

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