Insurers to Argos have launched a £13m law suit against the leather technology supplier in connection with the toxic sofas the retailer sold to consumers.

A law suit has been filed under Argos’ name at the High Court against Leather Trade House.

The action comes after Argos, Homebase and a number of other furniture retailers sold sofas which contained a fungicide, dimethyl fumarate (DMF) which stops them going mouldy during transportation.

Customers suffered burns and other injuries and are in line to win up to £20m, a claim that is believed to be the largest consumer group litigation recorded in the UK.

The lawsuit against the Leather Trade House claims that the technology supplier failed to properly investigate the effects of DMF.

If the lawsuit is successful it will not have any effect on the balance sheet of Argos parent company Home Retail Group.