Mattel Strikes $17 Million Deal in Sleeper Death Investors’ Suit

Mattel Inc.'s board and senior leadership will pay, through their insurers, almost $17 million to resolve long-running shareholder litigation over infant deaths and injuries allegedly linked to the Fisher-Price Rock ‘n Play Sleeper.

The Delaware Chancery Court approved the settlement Tuesday; as is typical in derivative cases, the money will be paid into the corporate coffers, rather than directly to shareholders. The $16.9 million insurance payout will cover over 70% of the costs Mattel and its Fisher-Price Inc. unit incurred to resolve consumer claims over the same product, Vice Chancellor Morgan T. Zurn said in a bench ruling.

While “the ...