Plaintiff States sought damages and injunctive relief, alleging that Defendant companies unlawfully fixed prices by entering into vertical and horizontal agreements with numerous toy manufacturers to limit the supply of certain popular toys to ‘no-frill’ warehouse clubs. Defendants agreed to pay $19,696,500 into a settlement fund in addition to contributing $36,292,650 in toys. Of the settlement fund, $2,150,000 reimbursed the States for investigative costs and attorneys fees.
Defendants were also enjoined from violating federal and state antitrust laws for a period of three years. The settlement of funds was distributed cy pres, benefitting children by providing them with toys, books, and other educational material. The toys were distributed by the Marine Toys for Tots Foundation throughout the 50 States over the 1999, 2000, 2001 and 2002 holiday seasons. This case was filed following a ruling by the Federal Trade Commission enjoining Toys R Us from similar conduct.