Toyota has reached a US$6m settlement with workers of a shuttered plant in Fremont, California.

Some of the workers at the plant had filed a lawsuit in 2010 alleging that they received smaller severance packages when the plant was shuttered in March 2010 because they were on medical leave.

The New United Motor Manufacturing Inc (NUMMI) plant was established in 1984 as partnership between General Motors and Toyota. GM had operated the plant itself from 1962 to 1980.

The settlement was reached between the workers, Toyota and NUMMI with Toyota contributing US$2.2m and NUMMI contributing US$3.8m.

The settlement will be divided by around 500 workers with the payout depending on tenure and pay scale.

A statement by Toyota read: “While we do not believe Toyota is liable in respect to this lawsuit, we are pleased that all parties have reached a conclusion in this litigation.”

In addition to this, the workers also agreed to settle claims of discrimination against NUMMI with the US Equal Employment Opportunity Commission (EEOC).