Toyota Announces Class Action Settlement of Acceleration Claims

Toyota has announced that it will set aside more than $1 billion to settle a class action lawsuit alleging that millions of its vehicles had various problems that could lead to dangerous unintended acceleration. The settlement will offer fixes or compensate owners of up to 16 million vehicles for resale value lost due to the various alleged problems. According to the New York Times, the vehicle brands affected by the settlement include Toyota, Lexus, and Scion. As part of the settlement, Toyota will either install brake-override systems in the affected cars or compensate owners for the loss of resale value if this was not possible.

The lawsuits stem from a horrific California accident in 2009 that killed four individuals.

Some suggested reasons for the unintended acceleration have included floor mats catching on accelerator pedals, or pedals that could stick when pushed to full throttle. It has never been established whether the problems were attributable to a problem with the electronics system, which won’t be hashed out and decided because there will be no trial. The vehicles affected include 30 Toyota vehicles and cover model years 1998 to 2010. In addition to the other terms of the settlement, Toyota will reportedly also contribute $30 million to finance automotive safety research related to unintended acceleration problems.

The lawsuits stem from a horrific California accident in 2009 that killed four individuals. An off-duty police officer in California was driving a loaner Lexus when it unexpectedly accelerated and crashed, killing him and his three occupants. In 2010, the National Highway Traffic Safety Administration (NHTSA) received many more complaints that certain Toyota vehicles were accelerating unintentionally. These reports culminated in an investigation that ultimately led to congressional hearings and hefty fines by the NHTSA.

Although the class action lawsuit has been settled when approved, there still remain a number of personal injury and wrongful death lawsuits pending. In addition, the attorneys general of 28 states filed a lawsuit alleging unfair business practices that has yet to be resolved.Toyota is expected to become the world’s largest automobile manufacturer in 2012, but the brand has been hurt by millions of Toyota recalls, congressional hearings, and grotesque accidents caused by the manufacturing problems. The company hopes this settlement will help it move forward and begin restoring its image