Toyota to Settle Unintended Acceleration Lawsuit

Toyota Motor Corp. will ante up a $1.1 billion settlement in hopes of putting in its rearview mirror a massive class-action lawsuit over unintended acceleration claims that led the company to recall millions of its vehicles and hurt the brand’s reputation for quality.

The proposed settlement was filed earlier this week in federal court in California and awaits approval by U.S. District Court Judge James Selna, who is overseeing the case. Reuters reports that the deal will settle most of the litigation involving unintended acceleration by Toyota vehicles. However, it will not cover wrongful death or injury claims.

Under the settlement, the automaker admits no fault, according to Reuters. The settlement will cover about 16 million Toyotas, as well as Lexus and Scion vehicles, from the 1998-2010 model years, according to court documents. The owners will be eligible for payments and safety updates from Toyota based on the age and type of vehicle.

The settlement is thought to be one of the largest involving a class-action lawsuit in the automotive sector. To cover the cost, the company will take a one-time, $1.1 billion pretax charge to its earnings for the third quarter, according to Reuters.

Toyota recalled more than 10 million vehicles between 2009 and 2011 for unintended acceleration issues that it claimed resulted from sticky gas pedals and faulty floor mats. The company refuted claims by critics that its electronic throttle system was at fault and a study by U.S. safety regulators failed to find a link between the throttle system and the acceleration incidents, according to Reuters.

If you or a loved one has been harmed by an unsafe vehicle, contact Sokolove Law for a free legal consultation and to find out if a product liability lawyer may be able to represent your case.

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