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Press release from CNW Group

Mega Brands announces preliminary approval of proposed class action settlement

Tuesday, September 27, 2011

Mega Brands announces preliminary approval of proposed class action settlement17:01 EDT Tuesday, September 27, 2011/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/MONTREAL, Sept. 27, 2011 /CNW Telbec/ - MEGA Brands Inc. (TSX: MB) announces that the U.S. District Court for the District of New Jersey has preliminarily approved the settlement of a class action lawsuit filed in 2008 by a resident of California on behalf of all persons who purchased and/or received "Magnet Toys" in the United States, which include those toys that were the subject of product recalls in 2006, 2007 and 2008.MEGA Brands denies any and all liability but has agreed to settle the matter to avoid the expense and resources that would be needed for further litigation. The Corporation has made a provision for this lawsuit in its financial statements and considers that, based on the proposed settlement, such provision is adequate.This lawsuit does not allege personal injury claims.  Rather, plaintiffs in the lawsuit claimed that certain Magnet Toys contained defective magnets, and they asked for their money back. The defendants in the lawsuit are MEGA Brands Inc., MEGA Brands America Inc., and Target Corporation.Under the proposed settlement, a consumer is considered to be a "Class Member" if they bought a qualifying Magnet Toy.  Under the settlement, Class Members will be eligible for a payment if (1) they bought a Magnet Toy that was subject to a recall, (2) they bought a qualifying Magnet Toy and have a receipt or other proof of purchase, (3) they purchased or received a qualifying Magnet Toy and have a piece of the toy, toy packaging, or the manual, (4) they have qualifying Magnet Toy parts, or (5) they submit a statement under oath that they purchased or received a qualifying Magnet Toy.The settlement provides that Class Members may receive cash reimbursements up to the purchase price of the toy, depending upon proof of purchase.  Defendants also have agreed to contribute $100,000 in cash and product toward the establishment of a foundation that addresses children's health issues.More details about the settlement and how to file a claim are available at www.megabrandssettlement.com or by calling 1-800-760-6332.The Court will hold a final approval hearing on December 15, 2011 at 11:00 a.m.  At that time, the Court will consider whether to grant final approval of the settlement and award attorneys' fees.About MEGA BrandsMEGA Brands Inc. is a trusted family of leading global brands in construction toys, games & puzzles, arts & crafts and stationery. They offer engaging creative experiences for children and families through innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information.The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board Dudes are trademarks of MEGA Brands Inc. or its affiliates.Forward-Looking StatementsAll statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements represent the Corporation's intentions, plans, expectations and beliefs. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking information and statements are based on a number of assumptions and involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by them, including, but not limited to risks, assumptions and uncertainties described in the Corporation's MD&A for the year ended December 31, 2010, which are available at www.sedar.com and on the Corporation's Web site. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law.For further information: Mark P. Girgis Vice President, Legal Affairs and Corporate Secretary MEGA Brands Inc. Tel: (514) 333-5555 ext. 2897