MONTREAL - Mega Brands Inc. has won a $72-million settlement related to its ill-fated acquisition of the Magnetix line of magnetic toys.
Under the settlement with Lawrence, Jeffrey and Sydney Rosen, who sold their Rose Art business and its Magnetix product line to Mega Brands several years ago, the Montreal-based toymaker will receive $17.2 million cash.
The Rosens will also drop claims totalling $54.8 million against the company.
Mega Brands says the settlement deals with all outstanding litigation between it and the Rosens.
The Rosens filed suit in 2006 claiming additional payments and compensation related to their sale of Rose Art. Mega Brands countersued.
Mega Brands claimed the Rosens withheld information about serious defects in the Magnetix product line, which had to be recalled and redesigned after it was learned that the magnets could come loose and be swallowed by children.
