DOW JONES NEWSWIRES

Mattel Inc. (MAT) and its Fisher Price toy unit will pay $12 million as part of a multistate settlement to resolve charges it shipped toys with lead paint to the U.S. last year.

The settlement follows the recall of millions of Chinese-made toys last year because of concerns that their lead paint didn't meet U.S. standards. Dozens of U.S. lawmakers later urged Mattel - the world's largest toy maker - to stop selling toys that contain any amount of lead, claiming the company wasn't doing enough to address safety concerns.

Under Monday's pact, Mattel will follow tougher standards for accessible lead in toys manufactured after Nov. 30 and also agreed to maintain at least four years of records for subcontractors that manufacture parts for its toys, including records of lead screenings and results.

Between August and October of last year, the Consumer Product Safety Commission recalled about 2 million Mattel and Fisher Price toys manufactured in China because of concerns that the toys contained excessive lead

The toys that sparked investigations included Barbie accessories, a toy train and a bath toy, among other things. All were pulled from store shelves last September.

In a separate action Monday, New York Attorney General Andrew Cuomo reached settlements with five "dollar" stores and a supplier that were found to be selling children's jewelry with high levels of lead. Those businesses will also adopt more stringent limits for lead in children's products.

Mattel shares were recently down 3% at $14.17.

-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com

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