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

Recommended

Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 2017
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