The world’s biggest toy-maker Mattel Inc. announced that 1.5 million of its products will be pulled off shelves due to potentially dangerous lead paint, a move that will cost the company about 30 million dollars.

Mattel said the toys were manufactured by a Chinese contractor for its Fisher Price unit, but the paint covering popular products like the Sesame Street characters contained lead in high quantities and could represent a serious risk factor for children’s health.

“We apologize to everyone affected by this recall, especially those who bought the toys in question,” Mattel CEO and chairman Robert A. Eckert said in a press release.

“Our goal is to correct this problem, improve our systems and maintain the trust of the families that have allowed us to be part of their lives by acting responsibly and quickly to address their concerns.”

Officials from the El Segundo-based company didn’t release an official statement regarding the losses suffered after this measure, but as a prime consequence shares plunged 8.7 per cent during early trading and an improvement isn’t in sight.

Reportedly, the company began an investigation early July and immediately stopped the manufacturing and commercialization of the tainted products. Also, Mattel said it will contact the Chinese contractors in order to review the process and avoid future embarrassing situations.

The company is recalling 967,000 toys from the US stores sold since May and 533,000 from other international markets that were produced between April 19 and July 6.