Attorney: Toyota agrees to settle recall case for $1B

Chris O'Meara/AP/File

LOS ANGELES Toyota said Wednesday it has reached a settlement worth more than $1 billion in a case involving hundreds of lawsuits over acceleration problems in its vehicles.

The company said in a statement that the deal will resolve cases involving motorists who said the value of their vehicles was adversely affected by previous recalls stemming from sudden acceleration problems.

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Lawyer Steve Berman, a plaintiffs' attorney, said the settlement is the largest settlement in U.S. history involving automobile defects.

"We kept fighting and fighting and we secured what we think was a good settlement given the risks of this litigation," Berman told The Associated Press.

The proposed deal was filed Wednesday and must receive the approval of a federal judge.

As part of the settlement, Toyota said it will offer cash payments to eligible customers who sold or turned in their leased vehicles between September 2009 and December 2010.

The Japanese automaker also will launch a program to provide supplemental warranty coverage for certain vehicle components, and it will retrofit additional non-hybrid vehicle models that are subject to a floor mat recall with a free brake override system.

The settlement would also establish additional driver education programs and fund new research into advanced safety technologies.

"In keeping with our core principles, we have structured this agreement in ways that work to put our customers first and demonstrate that they can count on Toyota to stand behind our vehicles," said Christopher Reynolds, Toyota vice president and general counsel.

Toyota has recalled more than 14 million vehicles worldwide due to acceleration problems in several models and brake defects with the Prius hybrid. Toyota has blamed driver error, faulty floor mats and sticky accelerator pedals for the unintended acceleration.

[tsigili]

The money, of course, goes to the government, and not the citizens who bought the cars.

[hypnotoad72]

I bet Toyota's prices will go up as a result.

The problem is, when a company does wrong and has to pay a settlement, it's meant to be a punishment to the company. Not an excuse to pawn off the punishment to everyone else and continue the same sleazy tactics as status quo.

So if prices go up by a penny, forget Toyota forever.

[boatdocster]

Just another Toyota POS...

Both the Prius and Camry were rated "unsatisfactory" in occupant protection for front right or left fender crashes.

Moving forward (aka TRD, the Toyota Racing Division) - with stuck accelerators, "transitory loss of braking", rust issues, steering failures, electronic computer failures, engine failures at 33K miles due to oil sludge build up despite frequent oil changes, truck frame failures, etc, etc, etc... "I'm lovin' it"

Not saying German or American cars are necessarily better, but Toyota is currently the worst car on the road for reliability and safe design.

[venusvegasvada]

I have to disagree with you on that. I've spent decades overseas in austere locations and do you know what vehicle you see the most out in the middle of no where? Toyota Hilux pickup trucks and Hino large trucks (Toyota's heavy truck division). They run and run and run and run.

[venusvegasvada]

Acceleration problems my @#@.

Parasites and idiots getting a free check.

If you are too stupid to keep the floor mat from getting mucked up around the gas pedal then you are too stupid to drive a car. Sell it and take a bus. Thanks for helping drive up the price of cars just a little bit more.

How much longer will the US keep bumbling along without the loser pays legal system? So many frivolous lawsuits every year and you know who gets stuck with the bill for everything at the end of the day? The consumer.

[twmat311]

I thought they ended this a year or so back as pedal "misapplication" (again). And my dealer said there were numerous cases found of rag rugs, plastic boot trays, etc, in the drivers' foot wells - so I now have to have my floor mats inspected at each service visit because some wingdings wedged scrap carpet remnants under their $25K car accelerators.

[hypnotoad72]

The customers will get screwed either which way in our new normal. (we're not "consumers", but then I think we're "personnel" instead of "human resources" too)

I've never had a problem using mats in any other vehicle... most people don't. I'll admit I've not read every report, but these issues usually don't get the glossover treatment.

I also posted directly to the article above as to why prices for customers should not go up.