ATTORNEY GENERAL BAKER ANNOUNCES SETTLEMENT WITH HASBRO IN ANTITRUST PROBE
Attorney General Thurbert E. Baker announced today that on Friday, November 20, 1998, a settlement agreement was reached with Hasbro and signed by the Attorney General. This agreement is the first settlement resulting from the lawsuit against Toys "R" Us and other toy manufacturers alleging that Toys "R" Us and various toy manufacturers entered into agreements to limit the supply of certain toys to Warehouse Clubs (e.g. Sam's) thereby violating the Sherman Antitrust Act and unfair competition laws and unfair trade practices laws. Forty-four states are participating in this action against these toy manufacturers for conspiring since 1990 to withhold popular toys from warehouse clubs that under Toys "R" Us prices.
Following lengthy settlement negotiations Hasbro has agreed to pay the amount of $2,380,000 in cash and provide a toy contribution in the amount of $3,570,000 at the manufacturer's cost. Toys from the Hasbro settlement will be allotted to all 50 states, Puerto Rico and the District of Columbia, and distributed through the U.S. Marine Corps' Toys for Tots program. Toys and cash payments will be divided according to each state's population. The payments to the states are made with the express provision that the funds benefit children by supplying them with toys, books or other educational materials.
Georgia will receive $97,550.00 worth of toys this holiday season as a result of this partial settlement. Last year in Georgia, Toys for Tots delivered toys to various churches, Masonic Lodges, Shriners and other shelters for battered women and children. Toys for Tots expects to deliver to similar organizations this year. Georgia will also receive a cash payment of $65,040.00.
As part of the accord, Hasbro has admitted no wrongdoing and the agreement has no effect on the ongoing case against co-defendants Toys "R" Us and toy makers Mattel Inc. and Little Tikes Company.