Toyota Offers $1 Billion Class Settlement
LOS ANGELES (CN) - Toyota offered to pay more than $1 billion to settle class action claims of sudden acceleration in its vehicles.
Toyota set up a website with details of its proposed settlement. The 50-page proposed settlement includes 244 pages of exhibits. It is available by clicking on the icon on this story on the Courthouse News home page, or through the Toyota website.
"The parties have reached a tentative settlement in this case," Toyota said on the website Wednesday.
The case is In re: Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices, and Products Liability Litigation. It seeks to cover "all economic loss actions."
Toyota said it asked the court for preliminary approval of the proposed settlement. "The Court has yet to render a decision. There are no further details available at this time. Please do not contact Toyota, Lexus or Scion or Toyota, Lexus, or Scion dealers for information about the settlement at this time. This website [link above] will be updated periodically as more information becomes available."
Toyota said it will take a $1.1 pre-tax charge against earnings to cover the cost of the settlement, which it estimates will cost it $1.2 billion to $1.4 billion, according to The Associated Press.
Hundreds of cases have been filed against Toyota for unintended acceleration since 2009. Toyota tried to blame the problem on faulty floor mats, made by third-party contractors that trapped accelerator pedals, then withdrew that claim.