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MEGA Brands Inc. announces that the U.S. District Court for the District of New Jersey has approved the previously announced settlement of a class action lawsuit filed against the Corporation in 2008 by a resident of California on behalf of all persons who purchased and/or received "Magnet Toys" in the United States .

MEGA Brands denied any and all liability but 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 approved 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.

For additional information, please refer to the press release issued by the Corporation on September 27, 2011, which is available at http://www.megabrands.com.

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