Toxic sofa victims win £1,800 payouts in Britain's largest consumer action

The 408 claimants – including 55 children – had suffered skin complaints caused by the sensitising agent dimethyl fumarate (DMF) in leather sofas manufactured by Chinese companies Linkwise and Eurosofa.

They will each receive 1,800 in what is believed to be the largest consumer group litigation in UK legal history.

The case was launched against three retailers – Argos, Land of Leather, and Walmsleys – which accepted liability.

In April, Mr Justice MacDuff was told that an agreement had been reached which meant that around 1,650 people would receive up to 20m, with each expected to receive between 1,175 and 9,000, depending on the severity of their symptoms.

The judge said the resolution of the litigation for another final cohort of 408 was a "very sensible and proper settlement" of their claims.

The EU has now banned the use of DMF after consumers in at least five European countries suffered burns and breathing problems due to the use of the chemical in imported leather products.

The compromise was reached after it had initially appeared that the 408 customers of Land of Leather – now in administration – would miss out, as another judge had ruled that they were not entitled to compensation from Zurich, the company's insurers.

That decision was due to be challenged in the Court of Appeal in January if yesterday's settlement was not approved.

Urging the court's consent, Frank Burton QC said that, given the risks of litigation, it was an "all or nothing" deal, which had been accepted by the majority.

He said that none of the children concerned were currently receiving any treatment and none had suffered any "catastrophic" injury. Once the source of the skin irritation – DMF – was removed, the problem was removed.

Even if the matter was successfully appealed, there would have to be another trial with implications for costs, he added.

Giving approval, Mr Justice MacDuff commented: "If this settlement doesn't happen, they are all likely to end up with nothing."

Zurich UK said: "We are pleased that the court has today approved this settlement and hope that this compromise agreement brings finality to this matter for those involved and these individuals can move on with their lives."