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.
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.
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.
(Reuters)
Join the official YWN WhatsApp status
One Response
Note that it turned out there was no problem with aceleration, and the accidents attributed to it were due to driver error. The payments are for the “bad publicity” and the money goes overwhelmingly to the attorneys. No one was injured, except Toyota, and of course consumers who will now have to pay more for their cars. The cars were, and still are, perfectly good. This abuse of the legal system is blatant fraud, and is making the US the laughing stock of the legal world (not to mention the cash cow). Other countries invest in producing goods and services, we invest in lawsuits.