Defendants will distribute the Net Settlement Fund by providing a discount at the cash registers of all KB Toys, KB Toy Works, KB Toy Outlet, Toy Liquidator and KB Toys Express stores nationwide, including Guam and Puerto Rico, equal to 30% off all qualifying purchases of $30 or more during October 8-14, 2003.

Plaintiff alleges that Defendants implemented a pricing scheme that utilizes two different prices which are placed in near proximity of one another on price tags, on shelf tags, on in-store signs and in retail and online advertisements. One price, a comparative or "reference" price, is printed in black ink and then crossed out in red ink. A lower, second price, which the consumer must pay to purchase the product, is displayed in simulated handwritten red ink. Plaintiff alleges that the comparative or "reference" price for the product is not the prevailing market price for the product and that little or no actual sales were ever consummated or expected at this price. Rather, Plaintiff alleges that it is a fictitious amount used to make the actual purchase price for the product appear as a bargain and as a reduction from the comparative price. Plaintiff contends that Defendants' alleged conduct violates the Illinois Consumer Fraud and Deceptive Business Practices Act ("Consumer Fraud Act") and the Illinois Uniform Deceptive Trade Practices Act ("Uniform Act"), as well as similar consumer protection statutes in other states, and constitutes unjust enrichment. Plaintiff is seeking compensatory and punitive damages, an award of attorneys' fees and expenses for bringing the Action and a permanent injunction to prevent Defendants from continuing to use the alleged wrongful pricing scheme.