Toyota settlement agreement gets tentative court approval

Article by Anita Panait, on July 21, 2013

United States District Judge James V. Selna has issued a tentative decision approving a settlement between Toyota Motor Corp. with US consumers who claimed that recalls related to sudden, unintended acceleration caused their vehicles to depreciate. Judge Selna posted the tentative decision Thursday on the court's Web site, with a hearing on final approval of the settlement set for Friday.

Last month, Selna postponed a decision on approving the agreement until he receive further documentation on how the settlement money would be distributed.

Plaintiff lawyers expect the settlement to reach up to $1.63 billion. Selna said in the tentative decision that the additional briefing and evidence reinforced the court's initial tentative conclusion that the “proposed settlement is fair, adequate, and reasonable."

The settlement will resolve economic-loss claims brought by owners of Toyota vehicles following the global recall of over 10 million vehicles in 2009 and 2010 due to issues related to possible unintended acceleration.

Toyota said in December 2013 that it would take a one-time $1.1 billion charge to cover the settlement costs.

According to the plaintiff lawyers' April 23, 2013, request for final approval, the settlement entails $757 million in cash payments (including $227 million in attorneys' fees and costs) and $875 million in non-monetary benefits (including free installation of a brake-override system for eligible vehicles). Toyota is still facing personal injury and wrongful death lawsuits based on claims that its vehicles caused accidents through unintended acceleration. [source: automotive news - sub. required]

Topics: toyota

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries