Looks like Toyota is finally moving forward.
A settlement was filed on behalf of the class action lawsuit on Wednesday. The settlement calls for a $1.1 billion payout from Toyota, putting the brakes on the unintended acceleration lawsuit once and for all.
The case never made it to trial, interestingly enough. Toyota settled prior to the case going to trial, probably because of the negative impact that a trial could have on the automaker. That includes bad publicity for Toyota.
But bad publicity is hardly something that the automaker isn't used to. During the past few years, Toyota has defended itself against accusations that it was negligent in ensuring driver safety and that it violated NHTSA protocol regarding recalls of defective vehicles.
In fact, the entire Toyota lawsuit came about after one hugely publicized car accident in San Diego, involving a Lexus. Several members of the same family were killed when their rented Lexus allegedly wouldn't stop accelerating -- an ordeal that was captured in a 911 call.
Wednesday's settlement is one of the largest settlements ever in the history of the automotive industry, writes The Wall Street Journal.
The settlement damages are comprehensive, including $250 million to compensate certain Toyota owners for the reduction in the value of the vehicle for those sold between Sept. 1, 2009, and Dec. 31, 2010. Another $250 million would go to those Toyota owners whose vehicles aren't eligible for a brake-override system.
Personal injury and wrongful death claims, however, are not included in the settlement.
The proposed Toyota settlement hasn't been finalized yet, and a judge still has to approve it. More details about the settlement will likely emerge in the coming days.
- Search Philadelphia Personal Injury Lawyers (FindLaw)
- Toyota Fined $17M for Delaying Lexus Recalls (FindLaw's Boston Personal Injury News)
- Toyota Hit With Massive Penalty for Brakes Problem (FindLaw's Philadelphia Personal Injury Law Blog)