Hundreds of consumers injured by 'toxic sofas' are to receive a shared payout of up to £20m, the High Court agreed on Monday.
The court heard that a "claims handling agreement" had been reached which could potentially benefit between 1,500 and 2,000 claimants thorough a series of "swift" payments. Mr Justice MacDuff ordered that some 1,650 people who suffered painful medical complaints after being exposed to the chemical DMF (dimethyl fumarate), used in the Chinese-manufactured sofas, would finally be compensated for their injuries.

Payments are expected to be between £1,175 and £9,000 depending on the severity of symptoms, which included severe skin or eye complaints, breathing difficulties or other medical complications.

The case, believed to be the largest consumer group litigation in UK legal history, took action against the three retailers of the affected sofas, Argos, Land of Leather and Walmsleys, who all admitted liability.

However, the 350 customers who bought the sofas at Land of Leather, which went into administration in January 2009, will miss out due to the decision of its insurers, Zurich, not to pay out, citing a breach of their policy.

This decision was upheld by the courts last month and is being referred to the court of appeal.

The EU has now banned the use of DMF after consumers in at least five other European countries suffered medical problems due the use of the chemical in several imported leather products.

Richard Langton, senior litigation partner at Russell Jones and Walker, who led the group action, said: "We believe many sofas are still in use with DMF in them. Anyone who develops symptoms should seek urgent medical advice. Anyone who has not registered a claim yet should seek help as time is running out to bring a claim."