Company - - Dec 23,2016
Ikea, the world’s largest furniture designer and seller, has agreed to pay $50m to the families of three children who died in the US by falling chests of drawers.
Camden Ellis, 2 year old, was found dead under a three drawer Malm in June 2014. After that, Curren Collas, 2, was crushed by a six-drawer Malm in February 2015. Earlier this year, 23 month old Ted McGee was also crushed by a similar Malm drawer.
The lawyers of these families announced this settlement, saying that the big payout was necessary considering the seriousness of the case. Lawyers at Feldman Shephard, the Philadelphia-based law firm, revealed that $50 million would be evenly distributed among the three families. They added that, as part of the settlement, Ikea also agrees on make three separate donations of $50,000 to hospitals in memories of the children and a $100,000 contribution to a charity working on child safety.
Sweden based Ikea too confirmed the news, but said that the settlement is still tentative as it is not yet approved by the court. In June this year, Ikea recalled millions of its Malm chests of drawers in North America. Earlier, the company had issued warnings to customers to use wall mounts with the Malm chests, but the third death in February prompted the recall.
As per the deal, Ikea has also agreed on selling chests that meet or exceed the national voluntary safety standard for storage units in the US, according to the law firm. The US Consumer Product Safety Commission has launched an educational campaign about the falling chests of drawers especially for kids.
Ikea also committed on spending more to raise awareness about the problem through TV advertisements, internet and digital communications and in-store warnings.