Dynacraft to Settle Bike Problem Allegations

Dynacraft Industries Inc. has agreed to pay $1.4 million to settle allegations that it incompletely and belatedly informed the government of serious problems with its mountain bikes, which caused injuries to several riders, federal safety officials said.

From 2000 to 2002, the San Rafael, Calif.-based company issued a series of recalls that amounted to more than 267,000 bikes, the Consumer Product Safety Commission said. Of the nearly 250,000 bikes Dynacraft imported from July 1999 to March 2001, all were made with forks that could break and separate from the front wheel, the commission said.