Toyota Agrees to Settle Lawsuit Tied to Accelerations - 12/26/12

DETROIT — 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 a Federal District Court in California, would be one of the largest of its type in automotive history. If the agreement is approved by Judge James V. Selna, Toyota would make cash payments for the loss of value on vehicles affected by multiple recalls and 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 were made to federal regulators that Toyota vehicles were accelerating suddenly without warning and causing accidents and injuries. Toyota has recalled more than eight 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.

Click here to read the full article from the New York Times