DETROIT, MICH - Toyota Motor agreed on Wednesday to pay more than $1 billion to settle a class-action lawsuit related to issues of unintended acceleration in its vehicles.
The proposed settlement, filed in U.S. District Court in California, would be one of the largest of its type in automotive history.
If the agreement is approved by Judge James Selna, Toyota would make cash payments for the loss of value on vehicles affected by multiple recalls and would install special safety features on up to 3.2 million cars.
While there are still individual personal injury and wrongful death lawsuits pending against Toyota, in addition to an unfair business practice case brought by the attorneys general of 28 states, the class-action case was the largest legal action related to economic losses by vehicle owners.
The suit was filed in 2010 after numerous complaints to federal regulators that Toyota vehicles were accelerating suddenly without warning and causing accidents and injuries.
Toyota has recalled more than 8 million vehicles in the United States for problems related to floor mats that could become entangled with accelerator pedals or pedals that could stick with the throttle open.
But the class-action case contended that Toyota's electronics systems were at fault. After a long investigation, government officials concluded last year that there was no evidence that faulty electronics contributed to the acceleration issues. But a subsequent review of that inquiry by a branch of the National Academy of Sciences found that federal regulators had lacked the expertise to monitor electronic controls in automobiles.
The company has been fined more than $60 million by the National Highway Traffic Safety Administration for failing to inform regulators of internal information about the sudden acceleration, which the company has largely attributed to driver error. Read the rest here.
Previous Toyota Recall Updates
- Toyota finishes in 21st place in latest JD Powers survey
- Toyota STOPS sales of Camrys and 7 other recalled models
- Corolla - Steering Problems affect 2009 and 2010 models
- Updated Lexus recall list
- PRIUS: Brake problems with Toyota's hybrid
- Toyota recalls 3.8 million cars on floor mat issue
- Tragedy Aug. 28 was at least the fifth fatal crash in the U.S. over the last two year
- So far 102 reports, 13 crashes, 5 deaths and 17 injuries...
- NY Times: President of Toyota apologizes
- Toyota Recalls 97,500 Corollas and Scions for brake malfunction
- Toyota Recalls 688,314 Sedans over defective parts
- Toyota Recalls 259,119 Camrys in China
- Toyota Recalls 2006 - 2007 Yaris Models
- Toyota to Recall more than 1.35 million cars worldwide
- Toyota Recalls 214,500 Lexus vehicles in USA
- Toyota Recalls 58,000 cars in Canada
- Toyota Recalls 533,000 Pickup Trucks and SUVs due to 11 accidents and 6 injuries
- Toyota California Plant that manufactures Corolla and Tacoma to close in March
- Millions of Toyota &and Lexus vehicles w/ throttle control problems
- Feds launch probe on 2000 - 2001 Toyota Tundras
- Toyota Sales: DOWN 16.1% in September
- Lexus GX-460 wins Consumer Reports "DON'T BUY" award