The maker of Buckyballs and Buckycubes says it's bowing to what it called "baseless and relentless legal badgering" from the Consumer Product Safety Commission.
The CPSC sued the company Maxfield and Oberton in July, arguing that children could suffer internal injuries if they swallowed the powerful magnets.
The magnet toy maker said Buckyballs and cubes had all the appropriate legal warnings. But it says it's too expensive to continue the legal battle.
Since 2009 the CPSC says at least a dozen children, from toddlers to teens, have swallowed the magnets. Some required surgery.