The recall is part of a settlement filed by The Consumer Product Safety Commission in which they asked all parents to stop using all models of the product.
Because Baby Matters -- parent company of the Nap Nanny manufacturer -- has gone out of business, there will be no fix or refund for the recalled products. Leslie Gudel, the founder of Baby Matters, said she was "happy to put this issue behind" her.
"It is very disappointing that we had to stop short in our fight. But it was time to move on," she added.
Around 165,000 of the Nap Nanny and Chill products were sold between 2009 and 2012 for about $130. Retailers Amazon.com, Buy Buy Baby, diapers.com and Toys R Us have agreed to refund the customers who purchased the item in their stores.
The CPSC sued Baby Matters soon after they went of of business alleging the Nap Nanny and Chill products were hazardous as their design was flawed and their instructions and warnings were inadequate. Baby Matters has denied these allegations.
According to Gudel, despite the suit, the incidents and the casualties the company gets "almost daily reminders from Nap Nanny users about how much our product helped their family."
"No infant has ever suffered an injury requiring medical attention when the Nap Nanny has been used properly," she added.