Toyota class-action suit worth up to $1.6 billion on the way
In 2010, Toyota for "unintended acceleration" issues, which generated lots of negative press for the automaker and put the brakes on Toyota sales.
Though the recall has fallen out of the headlines, it's still the subject of a huge class action lawsuit working its way through federal court. According to a report in , that case could be settled within the next month, and up to $1.6 billion hangs in the balance.
A QUICK RECAP
The National Highway Traffic Safety Administration began receiving complaints about sudden acceleration in Toyota vehicles as far back as 2002, but it took the 2009 deaths of 听to bring the issue to the public's attention.
Numerous investigations, ,听, , and later, some conclusions were reached. In that it found no electronic flaws on Toyota vehicles that might've resulted in sudden acceleration. However, there were problems with , which had caused them to become trapped beneath floormats in some cases.听
Toyota has been reluctant to accept blame in the matter and maintains that . Earlier this year, however, the company听 on a wrongful death case related to sudden acceleration. And now, Toyota is hoping for a repeat performance in one of the largest class action lawsuits in automotive history.
THE LOOMING SETTLEMENT
One month from today,听U.S. District Judge James Selna will determine whether a $1.63 billion settlement in that class action case is fair to plaintiffs. If he rules in Toyota's favor, much of that cash will be distributed to current and previous Toyota, Lexus, and Scion owners, reimbursing them for the loss in resale value their vehicles suffered following the recall.听
Settlement funds will also be allocated to:
- Legal fees accrued by Toyota owners ($200 million)
- Research into active safety features ($15 million)
- A media campaign aimed at driver education ($14.2 million)
- A study of defensive driving and proper use of existing safety systems ($800,000)
If you've owned a Toyota, Lexus, or Scion vehicle, you could be one of 9,000,000 people entitled to cash payments ranging from $37.50 to $125. To learn more, visit , or jump directly to the informative .听
We'll keep you posted as the case progresses.
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