NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Paula Dow announced on Tuesday that a court has awarded more than $67,000 in a judgment against an Indiana-based company that allegedly sold a banned toy in the state.

Superior Court Judge John F. Malone found that Indiana Novelty International, Inc., which does business as Kipp Brothers, offered and sold yo-yo waterballs in New Jersey, despite a 2008 law that banned the product because of potential hazards.

Dow and the state's Division of Consumer Affairs filed suit against the company in June 2009 for allegedly violating the state's Consumer Fraud Act and the Advertising Regulations and Yo-Yo Waterballs Act by advertising, offering for sale and selling the product.

Malone ordered the company to pay $54,300 in civil penalties and another $13,021.50 to the State for costs associated with the litigation.

"Children have been injured by yo-yo waterballs, including here in New Jersey," Dow said. "I'm pleased that the court found that we proved our case and awarded an appropriate penalty."

The yo-yo waterballs consist of a rubber ball filled with liquid attached to a rubber cord that can be stretched approximately 3 feet when swung. In June 2008, a 5-year-old girl suffered strangulation injuries from a Kipp Brothers yo-yo waterball that she received at her school fair. The girl sustained burst blood vessels before her mother was able to remove the wrapped cord from around her neck.

Under state law, anyone offering yo-yo waterballs for sale face an initial civil penalty of up to $10,000 and up to $20,000 for subsequent violations.