DOW JONES NEWSWIRES 
 

Mattel Inc. (MAT) and its Fisher-Price unit agreed to settle a class action related to a 2007 recall of millions of toys made in China that were found to contain high levels of lead

Co-plaintiff Whatley Drake & Kallas said in a statement the settlement provides "tens of millions of dollars in monetary relief as well as significant injunctive relief." According to the firm, Mattel recalled over 14 million toys in the U.S. in 2006 and 2007.

The world's largest toy maker previously recorded charges to reserve for the litigation. The company said final settlement won't be material to the company's operating results.

Mattel spokeswoman Lisa Marie Bongiovanni said Mattel wasn't able to provide a figure for the total settlement, as the figure would depend on the total number of claims processed. Bongiovanni said the company felt confident about the estimates it made, but added Mattel would make adjustments in future quarters if participation rates required.

Toy makers were hurt by a number of product recalls in 2007, leading to millions in costs for testing, legal expenses, advertising and product returns. Mattel recalled millions of toys that year, including those produced under licenses for characters including Elmo, Big Bird, Barbie and Polly Pocket.

The issue later led to mandatory federal toy safety standards, which included testing and tough new standards for lead and chemicals in products meant for children under 12.

Mattel's shares were up 2.7% to $19.37 in recent trading amid a broad market rally.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com