Toyota to settle acceleration cases for over $1 billion
DETROIT (Reuters) - Toyota Motor Corp has agreed to pay as much as $1.4 billion to settle U.S. litigation claims that its vehicles suddenly and unintentionally accelerated, according to court filings made public Wednesday.
Toyota said it will take a one-time pre-tax charge of $1.1 billion to cover the estimated costs of the settlement.
Hagens Berman, the law firm representing Toyota owners who brought the case in 2010, said in a press release the settlement was valued between $1.2 billion and $1.4 billion. In a plaintiff memo filed in court, the firm estimated that the total package was "conservatively valued" at more than $1.3 billion.
The deal amounts to "a landmark, if not a record, settlement in automobile defect class action litigation in the United States," according to the plaintiff memo. Toyota described the settlement as a "significant step forward" for the Japanese automaker, which has seen its image take a hit from the controversy.
The settlement, which must be approved by a California federal judge, includes direct payments to customers as well as the installation of a brake override system in about 3.25 million vehicles, plaintiff attorneys said.
The terms include a $250 million fund for former Toyota owners who sold vehicles at reduced prices because of bad publicity, and a separate $250 million fund for owners not eligible for the brake override system.
Plaintiff attorneys are slated to receive up to $200 million in fees and $27 million in costs, according to court documents.
(Reporting by Deepa Seetharaman and Bernie Woodall; additional reporting by Dan Levine and Jonathan Stempel; Editing by Dan Grebler and Cynthia Osterman)
- Tweet this
- Share this
- Digg this
- Malaysia Airlines plane missing at sea off Vietnam, presumed crashed
- UPDATE 3-U.S. FDA probes cognitive impact of new cholesterol drugs
- CORRECTED-UPDATE 4-Malaysia Airlines plane crashes in South China Sea with 239 people aboard - report
- Ukraine standoff intensifies; Russia says sanctions will 'boomerang'
- Malaysian plane with 239 aboard crashes - report
PLANE GOES MISSING
A Malaysia Airlines flight carrying 227 passengers and 12 crew went missing over the South China Sea on Saturday, presumed crashed, as ships and planes from countries closest to its flight path scoured a large search area for any wreckage. Full Article