8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 11, 2008

Action Products International, Inc.

(Exact name of registrant as specified in its charter)

Florida	000-13118	59-2095427
(State of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1101 N. Keller Road, Suite E

Orlando, Florida 32810

(Address of principal executive office, including zip code)

(407) 481-8007

(Telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

In November 2006, a final judgment, in the amount of $5.1 million, bearing interest at 9% annually, was entered in favor of Action Products International, Inc. in the Circuit Court for Alachua County, Florida, in a civil lawsuit against defendants Kid Galaxy, Inc. and its parent company Lung Cheong International Holdings Ltd., and Timothy L. Young. The Court has received $6.1 million in escrow from defendants. The defendants appealed the Court’s ruling.

On November 30, 2007, the First District State Court of Appeal filed its decision affirming the judgment and in January 2008 the First District Court of Appeal denied the petition to issue an opinion. On February 11, 2008, the Company announced it has filed a joint motion requesting the Circuit Court to release the funds deposited in escrow. The company expects to receive approximately $5.66M in gross proceeds. A copy of the press release is annexed as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired: None

(b) Pro Forma Financial Information: None

(c) Exhibits:

Exhibit No.	Description
99.1	Press Release: Action petitions court to release $5.1M award dated February 11, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

ACTION PRODUCTS INTERNATIONAL, INC.
By:	/s/ RONALD S. KAPLAN
	Ronald S. Kaplan
	Chief Executive Officer
	Date: February 11, 2008

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EX-99.1

Exhibit 99.1

ACTION PRODUCTS TO COLLECT LITIGATION JUDGMENT

Action petitions court to release $5.1M award

ORLANDO, Fla. – (DRAFT) – February 11, 2008 – Action Products International, Inc. (NASDAQ-CM: APII), the global manufacturer and distributor of brand-focused educational toys and products, today announced the filing of a joint motion petitioning the Circuit Court to release the funds held in escrow pending completion of appeals related to the judgment for $5.1M awarded to Action Products on November 20, 2006.

Including interest earned for the period November 20, 2006 through February 8, 2008 the company expects to receive gross proceeds of approximately $5.66M in late February. “We are very pleased with the outcome and look forward to using the proceeds to further our efforts in enhancing shareholder value,” stated Rob Burrows, CFO.

About Action Products International, Inc.

Action Products International, Inc. is a global manufacturer and distributor of brand-focused educational toys and products serving the non-violent children’s toys market for over thirty years. Headquartered in Orlando, Florida, the Company’s product line includes premium wooden toys, action figures, play-sets and activity kits that emphasizes on educational fun within the themes of arts and crafts, nature and science. The Company’s products are distributed and sold by more than two thousand retail stores in the US, Canada and the UK. For more information about Action Products International, Inc., please visit our website at www.apii.com.

Safe Harbor Forward-Looking Statements

Statements contained in this release that are not strictly historical are “forward-looking statements.” Such forward-looking statements are sometimes identified by words such as “intends,” “anticipates,” “believes,” “expects” and “hopes.” The forward-looking statements are made based on information available as of the date hereof, and the Company assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause the Company’s actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for the Company’s products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for the Company and other factors that may be more fully described in reports to shareholders and periodic filings with the Securities and Exchange Commission.

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Contact:

Billie Anne Dinkel, PR Manager

Action Products bdinkel@apii.com

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