Toyota Agrees to Pay Record Settlement
Toyota Motor Co. announced on December 26 that it has agreed to pay more than $1 billion to settle lawsuits involving unintended acceleration problems in some of its vehicles.
The proposed settlement applies to hundreds of lawsuits filed over the last three years by Toyota and Lexus owners who claim the value of their vehicles fell after a series of recalls linked to sudden acceleration.
An attorney representing Toyota said the settlement is the largest in U.S. history involving automobile defects.
Under the terms of the agreement, Toyota will set aside $250 million from which it will offer cash payments to qualified customers who sold or turned in leased vehicles between September 2009 and December 2010. In addition, 16 million current owners will receive a supplemental warranty covering parts that are connected to unintended acceleration claims, and the automaker will install brake override systems in millions of vehicles.
The proposed settlement is awaiting final approval by a federal judge. Updates will be posted at http://www.ToyotaELsettlement.com as more information becomes available. Current and former Toyota owners affected by the settlement may register on the website to receive periodic e-mail updates.
To date, Toyota has recalled more than 14 million vehicles worldwide due to safety issues and has been fined more than $66 million by the National Highway Traffic Safety Administration (“NHTSA”) for failing to make timely safety reports and initiate prompt recalls.
The latest fine, $17.35 million, came after NHTSA reported that Toyota admitted to NHTSA investigators that it knew in 2009 of sudden acceleration problems caused by faulty floor mats in certain Lexus models that it did not report until May 2012. NHTSA said that as part of the latest settlement, Toyota has agreed to make internal changes to their review of safety-related issues in the United States.
The federal government requires automakers to notify the NHTSA within five business days of discovering the existence of a safety defect or a violation of federal motor vehicle safety standards and to promptly conduct a recall.
Since graduating magna cum laude in 2005 from the University of Memphis School of Law, Thomas has helped make a difference in the lives of victims of serious personal injury, wrongful death, and professional negligence. Thomas has extensive trial experience in both state and federal court. Among other victories in the courtroom, Thomas obtained several impressive jury verdicts and settlements
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