A US judge has given final approval to the settlement of a class action lawsuit against Toyota by plaintiffs who claimed design defects caused some of the company’s vehicles to accelerate without warning.
The settlement was initially approved in December, Reuters noted. The terms include direct payments to customers as well as free installation of brake-override systems in an estimated 3.25m eligible vehicles, and the establishment of a customer support programme, according to court filings.
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Plaintiffs’ lawyers valued the deal at more than US$1.6bn, calling it “a landmark, if not a record, settlement in automobile defect class action litigation in the United States,” according to court filings. The lawsuit was filed in 2010.
Toyota announced in December that it would take a one-time pre-tax charge of $1.1bn to cover the estimated settlement costs. It has denied any wrongdoing, Reuters noted.
“This agreement allows us to resolve a legacy legal issue in a way that provides significant value to our customers and demonstrates that they can depend on Toyota to stand behind our vehicles,” Toyota spokeswoman Celeste Migliore told the news agency in a statement.
Concerns about potential unintended acceleration issues caused Toyota to recall more than 10m vehicles [worldwide] between 2009 and 2011. Plaintiffs said in the lawsuit that media reports and consumer complaints about the alleged defects caused the trade-in value for their vehicles to plummet.
The settlement of the lawsuit covers economic losses stemming from the alleged safety defects but does not include claims of wrongful death, personal injury or property damage.
More than 22 million potential class members have been notified of the settlement, according to court filings. Owners of affected Toyota, Lexus and Scion models sold in the United States have until July 29 to decide whether to participate in the settlement and file claims, according to court filings.
Plaintiffs’ lawyers are seeking $200m in fees and $27m for their expenses, the filings said.
