Toyota will soon know whether it can put the brakes on litigation that has been plaguing the automaker for the past three years.
Lawyers for Toyota filed a proposed settlement Wednesday, outlining the proposed payout for the company's unintended acceleration problem.
The settlement will include a $1.1 billion payout from Toyota, including $250 million going to Toyota owners for the reduction in the value of the vehicle on vehicles sold between Sept. 1, 2009 and Dec. 31, 2010.
Another $250 million is allotted to those Toyota owners whose vehicles aren't eligible for a brake-override system.
The company has been facing a lot of heat in the news recently, as the National Highway Transportation Safety Administration has accused the company of violating protocol regarding recalls of defective vehicles. As a result of the NHTSA investigation, Toyota was fined $17.35 million for its failure to properly report defective cars, reports The Motley Fool.
This fine, which came earlier this month, is also a record-setting fine.
And while it's related to the class action lawsuit, it's separate, in that it comes as an agency fine. The lawsuit, on the other hand, comes from Toyota consumers. It is one of the largest settlements ever in the history of the automotive industry, writes The Wall Street Journal.
Later today, the settlement is slated to be confirmed or denied by a judge. If all goes well, Toyota may finally be seeing an end to at least one part of this litigation nightmare.
The proposed Toyota settlement, however, does not include claims for personal injury and wrongful death related to the alleged acceleration problems. Those lawsuits will continue to move forward.
- Search Boston Personal Injury Lawyers (FindLaw)
- Toyota Fined $17M for Delaying Lexus Recalls (FindLaw's Boston Personal Injury News)
- Toyota Hit With Massive Penalty for Brakes Problem (FindLaw's Philadelphia Personal Injury Law Blog)