Toyota agrees to $1 billion settlement
Toyota Motor Corp has offered to settle its acceleration case with a payment of more than $1 billion.
Toyota Motor Corp President Akio Toyoda speaks during a news conference in Tokyo December 25, 2012. The company offered to settle its acceleration case for more than $1 billion.
Yuriko Nakao/Reuters
Toyota Motor Corp has agreed to pay more than $1 billion to settle U.S. litigation over claims that its vehicles suddenly and unintentionally accelerated, according to court filings made public on Wednesday.
Skip to next paragraph
Subscribe Today to the Monitor
The deal, 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.
Recommended: Top 5 product recalls in US history
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.
Follow Us