Mattel, the globally recognized toy and family entertainment company, has reached a $16.9 million settlement to resolve a stockholder derivative lawsuit. The case revolves around allegations that Mattel’s directors and top officers failed to oversee the safety of its Rock ‘n Play sleepers, linked to over 100 infant deaths. Here’s everything you need to know about this settlement and its implications.
Overview of the Mattel Settlement
The $16.9 million settlement addresses claims that Mattel’s leadership ignored critical safety warnings about its Rock ‘n Play sleepers. The lawsuit, filed nearly five years ago, accused Mattel’s top executives and board members of neglecting repeated warnings from the American Academy of Pediatrics about the dangers of inclined sleepers. These products were eventually recalled after being linked to multiple infant fatalities.
Background on the Case
The Rock ‘n Play sleeper, manufactured by Mattel’s Fisher-Price subsidiary, was a popular infant product designed to help babies sleep. However, concerns about its safety emerged after numerous reports of infant deaths linked to its use. The product was first recalled in April 2019, with an additional recall announced in January 2023 after more fatalities were reported.
The lawsuit claimed that Mattel’s executives and board members failed in their duty to ensure product safety, leading to significant harm to consumers and reputational damage to the company. Plaintiffs argued that Mattel’s leadership ignored warnings and continued to market the product despite its known risks.

Settlement Terms and Corporate Reforms
While Mattel has not admitted any wrongdoing, the settlement includes several provisions aimed at improving corporate governance and product safety. Key terms include:
- Monetary Settlement: Mattel will pay $16.9 million to resolve the claims.
- Governance Reforms: The company must allow its Governance and Social Responsibility Committee to oversee product safety and compliance issues. This committee will issue regular reports to ensure transparency and accountability.
- Product Quality Oversight: Mattel is required to formalize the position of its head of product quality and safety. This role will have direct access to senior management and the Governance and Social Responsibility Committee.
These reforms aim to prevent similar issues in the future and restore consumer trust in Mattel’s products.
Additional Legal Challenges
In addition to the stockholder derivative lawsuit, Mattel and Fisher-Price have faced other legal challenges related to the Rock ‘n Play sleepers. In July 2024, the companies agreed to pay $19 million to settle a multidistrict class action lawsuit filed by consumers. These claims alleged that Mattel and Fisher-Price failed to adequately warn consumers about the dangers of the Rock ‘n Play sleepers.
Furthermore, a separate class action lawsuit was filed against Mattel in December 2024, alleging that the company sold “Wicked” dolls with packaging containing links to explicit websites. These legal challenges highlight ongoing concerns about Mattel’s product safety and marketing practices.
Conclusion
The $16.9 million Mattel settlement is a significant step toward addressing the harm caused by the unsafe Rock ‘n Play sleepers. By implementing corporate governance reforms and compensating affected stockholders, Mattel aims to rebuild trust and ensure the safety of its products moving forward.
For more updates on this case and other legal developments, visit Use Sparrow. Our platform provides valuable resources to help you stay informed about class action settlements and consumer rights.