this was posted June 2012 at Flea Market bulletin Board:
Posted By: Ukulele Rob Date: 6/10/2012 4:07:55 PM
Folks at Magic Fluke Co. have been kind enough to update me: It's not actually a "rip-off." It is indeed an offshore-made copy, with Schoenhut and Magic Fluke in discussions about licensing, but the ones that ended up for sale somehow leaked into the market before the ink was dry on the deal. As I understand the situation, there will be a legal "toy" Flea-ish 'uke from Schoenhut for the children's market, suitably differentiated from the American-made Flea, but marketed in a way that increases 'ukulele visibility overall and benefits both companies.
Like the OP said, they do seem to be available again through various outlets which leads me to believe a licensing agreement has been struck.