Brimer v. Blue Sky Brands, Inc., The Paragon Gifts, Inc., Bits & Pieces, Inc., et al.

On November 15, 2006, the Honorable Ronald E. Quidachay granted the parties' motion to approve the Consent Judgment in the case Brimer v. Blue Sky Brands, Inc.; The Paragon Gifts, Inc.; Bits & Pieces, Inc. In this matter, Russell Brimer alleged that Blue Sky Brands, Inc., The Paragon Gifts, Inc., and Bits and Pieces, Inc. ("Blue Sky") manufactured, distributed, and/or sold products that contain or cause exposure to lead and/or cadmium in the state of California without providing the requisite health hazard warnings. The products covered in this case are identified in Section 1.5 of the Consent Judgment.

Per the injunctive relief, after July 15, 2006, Blue Sky shall not sell, ship, or offer to be shipped for sale in California covered products containing lead and/or cadmium, unless covered products are sold or shipped with Proposition 65 Warnings, meet the reformulation standards of Section 2.3, or are otherwise exempt pursuant to Section 2.2.2 of the Consent Judgment. Blue Sky commits that all Category A, B, C, D, and E covered products that it offers for sale in California after July 31, 2007, shall qualify as reformulated.

The monetary relief totals $66,500 in civil penalties and compensation for Brimer's counsel and investigative professionals; however, due to Blue Sky's prompt cooperation during the settlement process, Brimer agreed to credit a portion of the penalties. Moreover, as incentive for reformulation, Brimer agreed to potential additional penalty reductions pursuant to Section 3.1 of the Consent Judgment. Following the approval of the Consent Judgment, the Office of Environmental Health Hazard Assessment received 75% of the civil penalties and 25% was remitted to Brimer.

The terms of the Consent Judgment shall remain in place indefinitely.