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Hundreds of people who thought they had lost out on compensation for burns caused by toxic leather sofas will get payouts after all.

The largest consumer group litigation in the UK saw compensation of £20m agreed in April this year for 1,600 victims of the now banned anti-mould chemical which caused burns, lesions and breathing difficulties.

But one of the firms involved, Land of Leather, went bust leaving 412 customers fearing they would miss out.

Now the company’s insurers have agreed to pay out with the final sum, expected to be thousands of pound each claimant, to be agreed by the courts.

Maurice Heminsley, 68, from the West Midlands became the first person in the UK to win compensation for injuries caused by a toxic sofa.

In September last year he received a four-figure payout after his imported Chinese leather settee landed him in hospital with severe chemical burns.

He suffered a rash across his neck, bottom, back and legs within days of paying £1,100 for the sofa in November 2007.

He had weeping open sores that refused to heal and left him in agony.

The sofa, sold to him by local retailer Furniture Warehouse, had been packed with a sachet of the toxic fungicide dimethyl fumarate (DMF).

If you have suffered injury from a faulty appliance or other goods, call Thompsons accident compensation lawyers on 0800 0891 331 or text CLAIM to 78866 for no win no fee advice from our lawyers.

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